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

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bSupply-side policies

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cMonetarist Policies

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dClassical policies

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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

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b labour demand those willing to work at the going wage

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clabor demand, labor supply

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dthose willing to work at the going wage labor supply

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


africtional unemployment

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bdemand-deficient unemployment

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cclassical unemployment

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d structural unemployment

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


aInflationary expectations

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bunemployment

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cthe inflation rates

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dwage rates

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


athe inflation rate, interest rates

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bthe inflation rate, the unemployment rate

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cinterest rates, output

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doutput, employment

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


arise

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bfall

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cnot changes

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dfluctuates

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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

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boutput prices, employment

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cnominal money, the price level, output and employment

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dnominal money output prices

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


aexceeds

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b fall below

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cfluctuate around

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dremain equal to

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View Answer remain equal to

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


a the goods market

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b the money markets

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c the labor markets

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dall of these

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View Answer all of these

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


amonetary growth

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bbetter technology

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cmore capital

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dhigher labor supply

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View Answer monetary growth

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