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Practice MCQ
Practice MCQ
6. Assume nominal GDP was Rs8 trillion in year 1 and Rs8.8 trillion in
year 2. If year 1 is the base year, then
a. the GDP deflator is 110
b. prices increase on average by 10%
c. real GDP has not changed
d. none of the above is true
e. both a. and b. are true, but only if c. is true
15. Which of the following will not cause a shift of the IS curve?
a. an increase in transfer payments
b. a decrease in taxes
c. a change in money demand
d. a change in business and consumer confidence
e. a change in autonomous spending