Questions and answers for exam Preparation

MCQs

Total Questions : 131 | Page 11 of 14 pages

Question 101. Possible causes of involuntary unemployment are ?

minimum wage agreements
trade
scale economies
insider-outsider distinctions
all of the above

Discuss Question

Answer: Option E. -> all of the above
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 102. Governments may contribute to inflationary pressure because of building up large ?

numbers of employees
welfare plans
budget deficits
expenditures

Discuss Question

Answer: Option C. -> budget deficits
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 103. The long-run Phillips curve is ____ at the ____?

horizontal, natural rate of inflation
horizontal natural rate of unemployment
vertical natural rate of inflation
vertical equilibrium rate of unemployment

Discuss Question

Answer: Option D. -> vertical equilibrium rate of unemployment
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 104. The costs of inflation are ?

shoe leather costs
menu costs
income redistribution
uncertainly
all of the above

Discuss Question

Answer: Option E. -> all of the above
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 105. The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?

long run, short run
flexible imperfect markets
short-term long run
long run, imperfect markets

Discuss Question

Answer: Option C. -> short-term long run
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 106. In the events of an increase in the international price of oil that encouraged the central bank to accept lower real interest rates, inflation would most likely ?

fall
increase
remain the same
fluctuates

Discuss Question

Answer: Option B. -> increase
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 107. The equilibrium inflation rate is determined by the intersection of _____ and _____?

demand, supply
IS, LM
AD, AS
Labor demand, labor supply

Discuss Question

Answer: Option C. -> AD, AS
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 108. If a person thinks they are better off after a 10% wage increase, and all prices have risen 10% then they are experiencing ?

inflation
a supply shock
crowding out
inflation illusion

Discuss Question

Answer: Option D. -> inflation illusion
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 109. The classical model of macroeconomics assumes ?

wages and prices are sticky
wages and prices are flexible
the economy may operate below full capacity
the economy is always at full capacity
B and D

Discuss Question

Answer: Option E. -> B and D
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 110. Even though explicit contracts may lead to layoffs during recessions explicit contracts may still be efficient because such contracts ?