Question : The main tools of macroeconomics are ___________ and _________.

Option 1: Aggregate demand and aggregate supply

Option 2: Determination of income and employment

Option 3: Both 1 and 2

Option 4: None of the above

Question : Determination of equilibrium level 
 

Option 1: AD=AS
 

Option 2: S=I
 

Option 3: Both A and B
 

Option 4: Neither A nor B
 

Question : Which of the following statement are true?

1. According to Keynes, there are two approaches for determining the equilibrium level of income and employment in the economy.
2. In the contest of determination of equilibrium, AD, AS, savings and investment and all ex-post variables.

Option 1: Both are true.
 

Option 2: Both are false.
 

Option 3: Statement 1 is true, statement 2 is false.
 

Option 4: Statement 1 is false, statement 2 is true.
 

Question : Assertion: In the determination of equilibrium output, only ex-ante saving and ex-ante investment is considered.

Reason: Ex-ante saving and ex-ante investment are always equal to each other.

Option 1: Both Assertion and Reason are correct, and the Reason is the correct explanation of the Assertion.
 

Option 2: Both Assertion and Reason are correct, but the Reason is NOT the correct explanation of the Assertion.
 

Option 3: Assertion is correct, but the Reason is incorrect.

Option 4: Assertion is incorrect, but the reason is correct

Question : Which of the following are the assumptions of determination of equilibrium output.

1. Price level is assumed to be constant.
2. The government expenditure is autonomous in nature.
3. Equilibrium output is to be determined in context of long run.

Option 1: Only 2
 

Option 2: Only 1&3
 

Option 3: Only 1
 

Option 4: All 1,2&3