Economics MCQs

Page No. 141

Policies to reduce unemployment by reducing union power, tax cuts, reductions in unemployment benefit and investment subsidies are examples of ?


aKeynesian policies


bSupply-side policies


cMonetarist Policies


dClassical policies


View Answer Supply-side policies

The equilibrium rate of unemployment at any real wage, is the difference between ______ and ______?


a those willing to work at the going wage labour demand


b labour demand those willing to work at the going wage


clabor demand, labor supply


dthose willing to work at the going wage labor supply



A person who is made redundant because of the contraction of an industry is a victim of ?


africtional unemployment


bdemand-deficient unemployment


cclassical unemployment


d structural unemployment



The Short run Phillips curve can shift in response to changes in ?


aInflationary expectations


bunemployment


cthe inflation rates


dwage rates



The Phillips curve shows the trade-off between _____ and _____?


athe inflation rate, interest rates


bthe inflation rate, the unemployment rate


cinterest rates, output


doutput, employment



During Periods of rising inflation and rising interest rates we expect the demand for real cash to ?


arise


bfall


cnot changes


dfluctuates


View Answer rise

The quantity theory of money says that changes in ____lead to equivalent changes in ____ but have no effect on ______?


aprices, wages, output and employment


boutput prices, employment


cnominal money, the price level, output and employment


dnominal money output prices



Expansionary fiscal policy in the classical model will cause aggregate demand to _______ potential output?


aexceeds


b fall below


cfluctuate around


dremain equal to


View Answer remain equal to

At the intersection of AD and AS equilibrium is achieved in ?


a the goods market


b the money markets


c the labor markets


dall of these


View Answer all of these

In the classical model, potential output cannot be increased by ?


amonetary growth


bbetter technology


cmore capital


dhigher labor supply


View Answer monetary growth

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