SY BMS SEM IV final exam true or false

The basis of Keynesian theory is that market can fail.

• True

• False

In circular flow economy, firms supply labour.

• True

• False

GDP+C+I+G = GGDP.

• True

• False

At trough economic activities are at lowest level.

• True

• False

The point where the aggregate demand and the aggregate supply curves intersect is called effective demand.

• True

• False

As income increases both MPC and APC rises.

• True

• False

MEC curve slopes downwards.

• True

• False

The full form of MPC is managerial propensity to consume.

• True

• False

High powered money determinants money supply.

• True

• False

According to Keynes, interest is price for hoarding money.

• True

• False