The idea that government's fiscal policy can be used to stabilize the level of
output and employment can be attributed to which of the following economists:
a) Frederich Hayek
b) Ludwig von Mises
c) Frederic Bastiat
d) John Maynard Keynes

1 Answer

Answer :

d) John Maynard Keynes
John Maynard Keynes's 1936 book, 'The General Theory of Employment, Interest,
and Money' laid the foundations for Macroeconomics

Related questions

Description : Which economist is famous for his theory of comparative advantage? a) Karl Marx b) John Maynard Keynes c) F. Hayek d) David Ricardo

Last Answer : d) David Ricardo David Ricardo was a British political economist and his most famous theory was that of comparative advantage. Comparative advantage refers to the doctrine that anynation should use its resources solely in industries where it has the most international competitiveness

Description : Das Kapital, published in German in 1867, was authored by: a) Karl Marx b) John Maynard Keynes c) F. Hayek d) Samuelson

Last Answer : a) Karl Marx b) John Maynard Keynes c) F. Hayek d) Samuelson

Description : Who is called as the 'founding father of modern economics'? a) Adam Smith b) John Maynard Keynes c) F. Hayek d) Samuelson

Last Answer : a) Adam Smith Adam Smith's “1776 book "An Inquiry into the Nature and Causes of the Wealth of Nations"― many of the major ideas that we use in economics today

Description : Who is credited with brining the term "the invisible hand"• in economics? a) Adam Smith b) John Maynard Keynes c) F. Hayek d) Samuelson

Last Answer : a) Adam Smith

Description : Who among the following is not a classical economist? (1) David Ricardo (2) John Stuart Mill (3) Thomas Malthus (4) John Maynard Keynes

Last Answer : (4) John Maynard Keynes Explanation: Classical economics is widely regarded as the first modern school of economic thought. Its major developers include Adam Smith, Jean-Baptiste Say, David ... affected the theory and practice of modern macroeconomics and formed the economic policies of governments.

Description : Who among the following is not a classical economist? (1) David Ricardo (2) John Stuart Mill (3) Thomas Malthus (4) John Maynard Keynes 

Last Answer : John Maynard Keynes

Description : The deliberate action of the government to stabilize the economy, as opposed to the inherent automatic stabilizing properties of the fiscal system, is known as a) Forced fiscal policy b) Manual fiscal policy c) Discretionary fiscal policy d) Automatic fiscal policy

Last Answer : c) Discretionary fiscal policy

Description : Which one of the following economists is associated with Portfolio approach of demand for money ? (a) Keynes (b) Tobin (c) Friedman (d) Baumol

Last Answer : (b) Tobin

Description : Shear strain energy theory is also known as (a) Von Mises Theory (b) Coulomb’s theory (c) Rankine theory (d) None

Last Answer : (a) Von Mises Theory

Description : Shear strain energy theory for the failure of a material at elastic limit, is due to  (A) Rankine  (B) Guest or Trecas  (C) St. Venant  (D) Von Mises

Last Answer : (D) Von Mises

Description : Maximum principal stress theory for the failure of a material at elastic point, is known  (A) Guest's or Trecas' theory  (B) St. Venant's theory  (C) Rankine's theory  (D) Von Mises' theory

Last Answer : (C) Rankine's theory 

Description : The design of shafts made of brittle materials is based on (a) Guest’s theory (b) Rankine’s theory (c) St. Venant’s theory (d) Von Mises Theory

Last Answer : (b) Rankine’s theory

Description : Macroeconomics as a separate branch came to be studied after thecontributions of which economist? a) Adam Smith b) John Maynard Keynes c) F. Hayek d) Samuelson

Last Answer : b) John Maynard Keynes John Maynard Keynes's 1936 book, 'The General Theory of Employment, Interest, and Money' laid the foundations for Macroeconomics

Description : Which one is not the main objective of Fiscal Policy in India? A. To increase liquidity in economy B. To promote price stability C. To minimize the inequalities of income and wealth D. To promote employment opportunities

Last Answer : A. To increase liquidity in economy

Description : Who is credited for the concept that there could be equilibrium in an economy at less than full employment also ? (a) J.B. Say (b) Keynes (c) Fisher (d) Milton Friedman

Last Answer : (a) J.B. Say

Description : Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy

Last Answer : (4) Monetary policy Explanation: Bank Rate Policy, open market operations and variation of Cash Reserve Ratios, etc. are instruments of monetary policy. With the help of these instruments, the ... money, often targeting a rate of interest for the purpose of promoting economic growth and stability.

Description : Custom duty is an instrument of - (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy

Last Answer : (2) Foreign Trade Policy Explanation: Custom duty is a tax on imports imposed on an ad valorem basis, i.e, fixed in the form of a percentage on the value of the commodity imported.

Description : Taxation is a tool of - (1) Monetary-policy (2) Fiscal policy (3) Price policy (4) Wage policy

Last Answer : (2) Fiscal policy Explanation: In economics, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are government taxation and expenditure.

Description : The 'Interest Rate Policy' is a component of - (1) Fiscal Policy (2) Monetary Policy (3) Trade Policy (4) Direct Control

Last Answer : (2) Monetary Policy Explanation: Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the ... . Monetary authorities in different nations have differing levels of control of economy-wide interest rates.

Description : The Cash Reserve Ratio is a tool of : (1) Monetary policy (2) Tax policy (3) Agricultural policy (4) Fiscal policy

Last Answer : (1) Monetary policy Explanation: Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as ... CRR is a crucial monetary policy tool and is used for controlling money supply in an economy.

Description : Deficit financing is an instrument of - (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy

Last Answer : (3) fiscal policy Explanation: In economics, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments ... financing in India means the expenditure which in excess of current revenue and public borrowing.

Description : Which of the following is an example of fiscal policy (a) Change in interest rate (b) Change in tax rate © Controlling money supply (d) Manipulating bank rate

Last Answer : (b) Change in tax rate

Description : The Cash Reserve Ratio is a tool of : (1) Monetary policy (2) Tax policy (3) Agricultural policy (4) Fiscal policy 

Last Answer : Monetary policy

Description : Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy

Last Answer : Monetary policy

Description : Custom duty is an instrument of (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy

Last Answer : Foreign Trade Policy

Description : Taxation is a tool of (1) Monetary policy (2) Fiscal policy (3) Price policy (4) Wage policy

Last Answer : Fiscal policy

Description : The ‘Interest Rate Policy’ is a component of (1) Fiscal Policy (2) Monetary Policy (3) Trade Policy (4) Direct Control

Last Answer : Monetary Policy

Description : Deficit financing is an instrument of (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy

Last Answer : fiscal policy

Description : Friedrich Hayek was a proponent of : a) Keynesian economics b) Communism c) Classical Liberalism d) Socialism

Last Answer : : c) Classical Liberalism

Description : Depression is characterized by a. unprecedented level of underemployment b. Drastic fall in income c. Drastic fall in output and employment d. All the above

Last Answer : d. All the above Depression is one of the business cycles. Boom, recession, depression and recovery are the phases of a business cycle.

Description : In explaining the level of unemployment, Keynes emphasized,- (a) Changes in technology. (b) Aggregate demand. © Inflationary expectations. (d) Lending by financial institutions.

Last Answer : (b) Aggregate demand.

Description : The major objective of monetary policy is to - (1) increase government's tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy

Last Answer : (3) Promote economic growth with price stability Explanation: The main objective of monetary policy is to control the supply of money, often targeting an inflation rate or interest rate ... usually to contribute to lower unemployment, and to maintain predictable exchange rates with other currencies.

Description : The major objective of monetary policy is to (1) increase government’s tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy 

Last Answer : Promote economic growth with price stability

Description : In his book general theory of employment, interest and money, what was keynes credited with?

Last Answer : creating and shaping modern macroeconomics

Description : Which of the following is not the significance of small scale industries a. Employment generation b. Reduction of fiscal deficit c. Contribution to exports d. Mobilization of capital

Last Answer : Reduction of fiscal deficit

Description : The pre-liberalisation era of Indian Economy was under the grip of A. Unemployment B. Under-employment C. Fiscal Deficit D. Unfavorable and alarming balance of payment

Last Answer : D. Unfavorable and alarming balance of payment

Description : Do economists ever get it right?

Last Answer : Economics is a religion. What else is the mythical “Inivisible hand of the free market”, other than a God, ruling from above high?

Description : Which of the following economists is called the Father of Economics? (1) Malthus (2) Robinson (3) Ricardo (4) Adam Smith

Last Answer : (4) Adam Smith Explanation: Adam Smith, a Scottish moral philosopher and a pioneer of political economy, is cited as the "father of modern economics." He is best known for two classic works: The ... Wealth of Nations (1776). The Wealth of Nations is considered as the first modern work of economics.

Description : Classical economists’ neglects---- side in their theories. (a) demand (b) supply © savings (d) investment

Last Answer : (a) demand

Description : Which one of the following is NOT an assumption of classical theory of employment ? (a) Full employment (b) Laissez-faire policy (c) State intervention. (d) Perfect competition

Last Answer : (c) State intervention.

Description : Who among the following is known as “The father of scientific management”? a) Frederich W. Taylor b) Henry Fayol c) Robert Owen d) None of the above

Last Answer : c) Robert Owen

Description : The first organic compound synthesized in 1828 by Frederich Wohler was: w) benzene x) urea y) estrogen z) methane

Last Answer : ANSWER: X -- UREA

Description : Consumptions function refers to - (1) relationship between income and employment (2) relationship between savings and investment (3) relationship between input and output (4) relationship between income and consumption

Last Answer : (4) relationship between income and consumption Explanation: The Consumption function is a single mathematical function used to express consumer spending. It was developed by John Maynard Keynes and ... by current income and induced consumption that is influenced by the economy's income level.

Description : Acording to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes - (1) a fall in prices of output and resources (2) a fall in real gross National product ... a rise in real gross National product and investment (4) a rise in prices of output and resources

Last Answer : (1) a fall in prices of output and resources Explanation: In 1936, John Maynard Keynes published the book "The General Theory of Employment, Interest and Money to explain the prolonged and ... at a below-full-employment equilibrium. Suppose that the economy is at the full-employment equilibrium.

Description : The basic object of all production is to (1) satisfy human wants (2) provide employment (3) make profits (4) increase physical output

Last Answer : (1) satisfy human wants Explanation: According to Adam Smith, consumption is the sole end and purpose of all production. The goal of production is the satisfaction of human desire. All the processes, by which human labor creates goods and services, bring them to the ultimate consumer.

Description : The phase of gradual fall in income, output and employment is a. Boom b. Recession c. Depression d. Recovery

Last Answer : b. Recession Boom, recession, depression and recovery are the phases of a business cycle. In this phase, business activity is in low gear.

Description :  Consumptions function refers to (1) relationship between income and employment (2) relationship between savings and investment (3) relationship between input and output (4) relationship between income and consumption

Last Answer : relationship between income and consumption

Description : According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes (1) a fall in prices of output and resources (2) a fall in real gross National product and ... rise in real gross National product and investment (4) a rise in prices of output and resources

Last Answer :  a fall in prices of output and resources

Description : The basic object of all production is to (1) satisfy human wants (2) provide employment (3) make profits (4) increase physical output

Last Answer : satisfy human wants