Category: 2. TGT (Arts) HP

If the government pays a contractor for building a bridge, it is classified as A Revenue expenditure B Capital receipt

In most countries, the “budget year” usually refers to A One calendar month B Two-year plan C One financial year

A government budget is best described as A Family income plan B Bank balance sheet C Annual financial statement D

In a simple Keynesian model with proportional tax rate t, the government spending multiplier becomes A 1/(1−c(1−t)) B 1/(1−c+t) C

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