The concept of 'Fiscal Multiplier' measures: MCQ with Answer and Explanation

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The concept of 'Fiscal Multiplier' measures:

A. Only the change in interest rates

B. Only the change in the exchange rate

C. Only the change in the money supply

D. The change in output resulting from a unit change in government spending or taxes

Answer: Option D

Solution (By JKSSB Mock Tests)

The fiscal multiplier is the ratio of the change in real GDP to an exogenous change in the fiscal instrument (government purchases or taxes).

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' on salt is:

A. 0%

B. 18%

C. 5%

D. 12%

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Correct Answer: Option A

Explanation:
Common salt is exempt from GST.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on hotel accommodation Rs 1,000 to Rs 7,500 is:

A. 12%

B. 28%

C. 5%

D. 18%

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Correct Answer: Option A

Explanation:
Hotel rooms in this tariff range attract 12% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'National Human Rights Commission' is a:

A. judicial body

B. statutory body

C. constitutional body

D. private body

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Correct Answer: Option B

Explanation:
NHRC is a statutory body under the Protection of Human Rights Act, 1993.

This question belongs to: Economy GK Economy Set 1

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