Q.1.15 Induced consumption is: (a) the part of consumption which is independent of the level of income. (b) the minimum level of consumption that is financed from sources other than income. (c) The maximum level of consumption that is financed from sources other than income. (d) shown by the slope of the consumption function. Q.1.16 In the Keynesian model, an introduction of a proportional tax will: (a) increase the slope of the consumption function. (b) reduce the multiplier. (c) increase the equilibrium level of income. (d) increase the multiplier. Q.1.17 A decrease in the price level will: (a) shift the AS curve to the left. (b) shift the AD curve to the left. (c) shift the AS curve to the right. (d) leave both the AD curve and the AS curve unchanged. Q.1.18 During (a) increases, increases an economic expansion, real GDP ____ and unemployment ____. (b) increases, decreases (c) decreases, increases (d) decreases, decreases Q.1.19 Individuals leave the labour force when they: (2) (a) find employment. (b) become unemployed. (c) retire. (d) work in the informal sector. Q.1.20 A pattern of expansions and downswings discerning economic activity over a number of years is known as: (a) cyclical instability. (b) economic growth. (c) business cycle. (d) business cycle indicators.
Q.1.15 Induced consumption is:
(a) the part of consumption which is independent of the level of income.
(b) the minimum level of consumption that is financed from sources other than income.
(c) The maximum level of consumption that is financed from sources other than income.
(d) shown by the slope of the consumption function.
Q.1.16 In the Keynesian model, an introduction of a proportional tax will:
(a) increase the slope of the consumption function.
(b) reduce the multiplier.
(c) increase the equilibrium level of income.
(d) increase the multiplier.
Q.1.17 A decrease in the price level will:
(a) shift the
(b) shift the AD curve to the left.
(c) shift the AS curve to the right.
(d) leave both the AD curve and the AS curve unchanged.
Q.1.18 During
(a) increases, increases
an economic expansion, real
(b) increases, decreases
(c) decreases, increases
(d) decreases, decreases
Q.1.19 Individuals leave the labour force when they: (2)
(a) find employment.
(b) become unemployed.
(c) retire.
(d) work in the informal sector.
Q.1.20
A pattern of expansions and downswings discerning economic activity over a number of years is known as:
(a) cyclical instability.
(b)
(c) business cycle.
(d) business cycle indicators.
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