10.

11.

12.

2 2 11386

The amount by which the real Gross Domestic Product, or real GDP, exceeds potential GDP, is
referred to as :

(a) Inflationary gap. (b) Deflationary gap.
(c) Recessionary gap. (d) None of these.

Keynes argued that economy will in equilibrium at :

(a) Full employment (b) Under employment.

(c) Less than full employment. (d) Frictional unemployment.
Money has no real effect :

(a) Neutrality of money. (b) Real effect.

(c) Consumption effect. (d) Income effect.

Milton Friedman proposed the :
(a) Permanent Income Hypothesis. ௫) Life Cycle Hypothesis.
(c) Absolute Income Hypothesis. (d) Relative Income Hypothesis.

In the consumption function, Keynes proposition holds that MPC :

(a) 0. ೧೫ ತ್ಯ
(८) 041. (6) 0» ಶಿಆ&.
Keynes recommended ————— as a macro economic policy strongly.

(a) Fiscal Policy.

(b) Monetary Policy.

(c) Both Fiscal and Monetary Policy.

(d) Neither Fiscal and Policy.
Micro Economics - Macro Economics are :

(a) Mutually Exclusive. (b) Independent of each other.

(c) Interdependent. (d) Competitive to each other.
Keynesian Unemployment is :

(a) Voluntary. (b) Cyclical.

(c) Structural. (d) Involuntary.

(12 x % =6 marks)