30.

33.

33.

2

Wage cut leads to lower interest rates and increased investment :
(a) Real Balance Effect. (४) Pigou Effect.
(ര Weahkh Effect.

Disposable income includes :
(೩) Direct tax.

<) Only wealth tax.
Identify the strategic variable in the Classical theory of employment

(d) Keynes Effect.

(b) Indirect tax.
(d) None of the above.

1೩) Income.
(0) Interest rate.
(ര) Investment and full employment.
(രീ Saving and Say’s Law of market.
Velocity of circulation of money (V) is negatively affected by :
(a) Shorter time interval of income receipts.
(>) Economic prosperity.
(ec) Liquidity preference is less.
(ര High degree of inequality.
Which of the following statement is/are true ?

(೩) During a recession the economy is inside its production-possibility frontier.

(>) During a recession the GDP gap is positive.
(ര During a recession the unemployment rate is increasing.
(രി All of the above.
A pesitive GDP gap exists when :
(a) Neminal GDP is greater than real GDP.
(b>) Real GDP is greater than potential GDP.
Potential GDP is greater than real GDP.

६६३
Exonomic activity is at its full-employment level.

id)
Unanticipated inflanon is harmful to :
(a) Retirees whose retirement income is indexed.
நு Dedtors.
ര നേട.

१९;

Boopomic growth but has no effect upon individual members of the economy.
(12 x % = 6 marks)