Macro Quiz Economic hons (SEM 3)

Kanan verma 22510014

1. _____________ interest rate is independent of the rate of
money growth.(Real)
2. Output Growth above normal growth rate leads to
________in unemployment rate.(decrease)
3. _________ is a concept which increases wages in line with
inflation.(Wage indexation)
4. ________________ is the rate of unemployment which
keeps the Inflation Rate constant.(natural rate of
unemployment)
5. A Deficit reduction leads to _______ in output and
interest rate in short run .(decrease)
6. Y=Y(m/p,G,T) , in this formula which terms are positively
related to output .(m/p,G)

Vedika Garg 22510013

1. _______ is the difference between the actual and natural
unemployment rate of one percentage point for 1 year
(point year of excess unemployment)
2. Deflation means _________ in price level whereas
disinflation means decrease
in__________.(decrease,inflation rate)
3. A monetary expansion leads to _______ in output in
medium run.(no effect)
4. When a person changes his expectations for the difference
between the actual values and to be expected values is
called ______(adaptive expectations)
5. The slope of the consumption function is _________
(MPC)
6. If output is above the natural level of output, the AS curve
shifts _______(upward))