Author: Study Clue

According to Keynes, firms decide current output mainly by A Past year profits B Population growth rate C Gold reserve

In a simple economy, equilibrium can also be stated as A C equals Y B S equals I C G

Under classical theory, the interest rate mainly balances A Imports and exports B Tax and subsidy C Saving and investment

In classical theory, what mainly ensures full employment in the long run A Wage flexibility B Price controls C Subsidy

When money is used to compare the value of a bicycle and a phone, it is serving as A Unit

Money is called the “most liquid asset” mainly because it A Converts instantly to goods B Gives highest return C

If a shopkeeper accepts ₹500 without checking the buyer’s needs, this best shows money as A Unit of account B

Money is called a “medium of exchange” because it A Stores wealth always B Measures population size C Helps buy

In a barter system, the biggest difficulty in exchange is A No need of money B Fixed prices exist C

A country’s GDP will NOT change if residents buy more A Domestic vegetables B Local bus tickets C New local