Class 12 Economics (Macro Economics) Chapter 2 National Income Accounting Quiz 26 (6 MCQs)

Quiz Instructions

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1. Which of the following best describes 'stagflation'?

Correct Answer: D) High inflation and high unemployment.

2. What is real GDP?

Correct Answer: B) Gross domestic product calculated at constant prices.

3. In which of the following situation, there is contraction of circular flow in an economy?

Correct Answer: A) Leakage.

4. The term 'real national income' is used to:

Correct Answer: B) Adjust income for inflation.

5. Which of the following is NOT included in the calculation of national income?

Correct Answer: C) Government transfer payments.

6. If there is a decrease in business investments in a country, what impact would it have on GDP calculated using the expenditure approach?

Correct Answer: A) Decrease GDP.