List of top Commerce Questions on Macro-Economics

Assertion (A):
Inflation reduces the purchasing power of money.
Reason (R):
During inflation, prices of goods and services rise continuously.

Arrange the following components of Balance of Payments in correct order from current account to capital account:
A. Foreign Investments
B. Export and Import of Goods
C. Banking Capital
D. Services
E. Transfer Payments

Which of the following are the assumptions of Say's Law of Market? A. The size of market is not capable of expansion
B. Perfect competition prevails in factor and product market
C. There is optimum allocation of resources
D. Labour and capital cannot be raised based on price mechanism
E. All savings are automatically invested

Match List - I with List - II:

Which of the following is NOT correct in respect of Phillips Curve?

Assertion (A):
As per Psychological law of consumption, when aggregate income increases, consumption expenditure also increases but by a somewhat smaller amount.
Reason (R):
As income increases, more and more of our wants get satisfied and lesser amounts are spent out of subsequent increases in income.

Arrange the following steps involved in calculation of National Income by Income Method in proper sequence:
A. Estimation of Net Factor Income from Abroad
B. Classification of Factor Income
C. Estimation of Domestic Income
D. Identification and Classification of Producing Enterprises
E. Estimation of National Income

Which of the following statements are correct? (A). A proportional income tax is an automatic stabiliser.
(B). An increase in autonomous spending raises the equilibrium level of income.
(C). As the marginal propensity to consume gets larger, the lower the multiplier will be.
(D). A reduction in transfer payments lowers the output.

Keynesian relationship between income and consumption is termed as:

To understand the use of scarce resources and to study the composition of GDP (Gross Domestic Product) among various types of spending, GDP is divided into which of the following components?
(A) Consumption
(B) Investment
(C) Governement Purchases and Net Exports
(D) Governement Consumption and Net Imports
Choose the correct answer from the following.

Match List-I with List-II:

List I	List II
(A) IS-LM Model	Combines Keynesian cross and elements of the theory of liquidity preference (II)
(B) IS Curve	Shows the points that satisfy equilibrium in the goods market (I)
(C) Intersection of IS and LM	Shows the interest rate and income that satisfy equilibrium in both markets for a given price level (IV)
(D) LM Curve	Shows the points that satisfy equilibrium in the money market (III)

Choose the correct answer from the options given below:

Apart from Gross Domestic Product (GDP), Gross National Income (GNI), and Net National Income (NNI), the other important indicators to measure the health of an economy are: