NAT II Management Science Economy With Answers

NAT II Management Science Economy

Sr. # Questions Answers Choice
1 The real exchange rate is defined as the: Market exchange rate adjusted for prices Market exchange rate adjusted for interest rates Market exchange rate Exchange rate determined by the government
2 Which of the following economists came up with a theory regarding the tradeoff between unemployment and inflation? A.W. Phillips John Maynard Keynes Joseph Schumpeter Milton Friedman
3 What is the interest rate effect that explains why the aggregate demand curve slopes downward? It refers to the effect of changes in the price level on quantity of investment demanded which in turn affects interest rates <div>It refers to the effect of interest rates on borrowing which in turn affects consumption spending.</div> It refers to the effect of changes in the price level on interest rates which in turn affects the quantity of investment demanded It refers to the shifts in aggregate demand when interest rates change
4 In the short run, the equilibrium price level and the equilibrium level of total output are determined by the intersection of: The aggregate demand, the short-run aggregate supply and the long-run aggregate supply curves The short-run aggregate supply and the long-run aggregate supply curves The aggregate demand and the short-run aggregate supply curves The aggregate demand and the long-run aggregate supply curves
5 For a study of the long term growth of the economy, we use: Real GNP Nominal GNP Personal income Disposable personal income
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