Questions and answers for exam Preparation

MCQs

Total Questions : 131 | Page 12 of 14 pages

Question 111. An unspoken agreement between workers and firms that the firm will not cut wages is known as ?

an implicit or social contract
a relative-wage contract
employment at will
an explicit contract

Discuss Question

Answer: Option A. -> an implicit or social contract
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 112. The expectations augmented Phillips curve was the Work of which group of economists ?

New classical economists
Keynesian
Monetarists
Marxists

Discuss Question

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

Question 113. The view of the Phillips curve that prevailed in the 1960s implied that policies that ?

lower unemployment rate will tend to lower the inflation rate
lower unemployment rate will tend to raise the inflation rate
raise inflation rate will tend to raise the unemployment rate
lower inflation rate will tend to raise the unemployment rate

Discuss Question

Answer: Option B. -> lower unemployment rate will tend to raise the inflation rate
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 114. The Phillips curve is a graph showing the relationship between ?

the price level and the unemployment rate
the inflation rate and the unemployment rate
the level of aggregate output and the price level
the inflation rate and the level of aggregate demand

Discuss Question

Answer: Option B. -> the inflation rate and the unemployment rate
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 115. Which school of economic thought suggested that one possible cause of inflation was a ‘push’ from the cost side ?

New classical economists
Keynesian
Marxists
Monetarists

Discuss Question

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

Question 116. The measured unemployment rate can be pushed below the natural rate, but ?

only in the short run, and not without inflation
only in the long run and not without inflation
only is the short run and only if the price level is constant
only in the long run and only if the price level is constant

Discuss Question

Answer: Option A. -> only in the short run, and not without inflation
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 117. The natural rate of unemployment is generally thought to be the sum of ?

frictional unemployment and seasonal unemployment
frictional unemployment and cyclical unemployment
frictional unemployment and structural unemployment
cyclical unemployment and structural unemployment

Discuss Question

Answer: Option C. -> frictional unemployment and structural unemployment
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 118. Those who hold the classical view of the labor market are likely to believe that ?

neither monetary nor fiscal policy will have an effect on output and employment
monetary but not fiscal policy will have an effect on output and employment
Fiscal, but not monetary policy will have an effect on output and employment
both monetary and fiscal policy will have an effect on output and employment

Discuss Question

Answer: Option A. -> neither monetary nor fiscal policy will have an effect on output and employment
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 119. One of the tenets of the classical view of the labor market is that the wage adjustments that are necessary to clear the labor market occur ?