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ECO442
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1. Trade-off between inflation and unemployment is related to ------

	      price rise

	      wage rise

	--->> price-wage spiral

	      rise in both price and wage

2. According to Philip, the relationship between inflation and unemployment is -------

	      proportional

	      relative

	--->> inverse

	      direct

3. Basically there are ------- types of unemployment

	      three

	--->> two

	      eight

	      six

4. If I + G exceed S + T, the government should adjust its revenue and expenditure by encouraging saving and tax revenue.

	--->> TRUE

	      FALSE

	      indiference

	      ambiguous

5. Marginal propensity to consume is directly proportional to the multiplier

	--->> TRUE

	      FALSE

	      indiference

	      ambiguous

6. Marginal propensity to consume is inversely proportional to the multiplier

	      TRUE

	--->> FALSE

	      indiference

	      ambiguous

7. The value of the marginal propensity to consume determines the size of the multiplier

	--->> TRUE

	      FALSE

	      indiference

	      ambiguous

8. The IS represent equilibrium in the  ---------  market

	      money

	      capital

	--->> product

	      labour

9. Stagflation means -------- relationship between inflation and unemployment

	      proportional

	      relative

	      inverse

	--->> direct

10. -------- is the equality of saving and investment at equilibrium level of income and interest rate.

	      LM

	--->> IS

	      ISLM

	      LMIS