ECO | MCQs

Explanation

The Great Depression is widely considered to have begun with the stock market crash in the United States in October 1929.

This economic downturn is also known as the Depression of 1929 or the Slump of 1929. 

Explanation

The total output produced in a country, including that from both domestic and foreign resources, is called Gross Domestic Product (GDP).

GDP represents the total market value of all final goods and services produced within a country's borders in a specific time period.

Explanation

Gross Domestic Product (GDP) is the most commonly used measure of economic activity in a country.

It reflecting the total value of goods and services produced within its borders.

It helps assess the economic health and growth of a nation.

Explanation

• If fiscal policy is trying to promote stability and economic growth through tax cuts, it is using expansionary fiscal policy.
• Expansionary fiscal policy involves increasing government spending and/or reducing taxes to stimulate economic growth and boost aggregate demand.

Explanation

• The natural rate of unemployment is the unemployment rate that exists when the economy is at full employment.
• This level of unemployment represents the rate at which the labor market is in equilibrium, with all available labor resources being utilized efficiently.

Explanation

• The theory of comparative advantage was presented by David Ricardo.
• He introduced this concept in his book "Principles of Political Economy and Taxation," published in 1817.

Explanation

Explanation

The correct option that could cause the aggregate demand curve to shift to the left is "Contractionary demand management policies."

Explanation

• The period of the business cycle in which real GDP is increasing is called the "Expansion" phase.
• During an expansion, economic activity is growing, employment is typically rising, and overall economic indicators are improving.
• This phase is often characterized by increasing consumer spending, business investment, and confidence in the economy.

Explanation

If demand function for good X is given by X^D = 1500-1.3P,-1.8P + 2M then we know that goods X and Y are complements to each other.