Determination of Income and Employment Class- 12 MCQs
Determination of Income and Employment Class- 12 MCQs Question 1. What is the shape of the Keynesian Aggregate Supply before the level of full employment is attained? (A) Perfectly inelastic (B) Perfectly elastic (C) Unitary elastic (D) More elastic Answer: (B) Perfectly elastic Question 2. According to classical economists, real wage rate is ______ to the Marginal Productivity of Labour. (A) Equal (B) More (C) Less (D) None of these Answer: (A) Equal Question 3. What is the cause of Keynesian perfectly elastic Aggregate Supply curve? (A) Wage price rigidity (B) Constant Marginal Product of Labour (C) Both of these (D) None of these Answer: (C) Both of these Question 4. According to classical economists, there always exists ______ equilibrium in the economy. (A) Full employment (B) Underemployment (C) Over full employment (D) None of these Answer: (A) Full employment Question 5. What will be APC when APS = 0? (A) One (B) Z