Questions and answers for exam Preparation

MCQs

Total Questions : 131 | Page 9 of 14 pages

Question 81. A person who is made redundant because of the contraction of an industry is a victim of ?

frictional unemployment
demand-deficient unemployment
classical unemployment
structural unemployment

Discuss Question

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

Question 82. At the intersection of AD and AS equilibrium is achieved in ?

the goods market
the money markets
the labor markets
all of these

Discuss Question

Answer: Option D. -> all of these
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 83. The quantity theory of money says that changes in ____lead to equivalent changes in ____ but have no effect on ______?

prices, wages, output and employment
output prices, employment
nominal money, the price level, output and employment
nominal money output prices

Discuss Question

Answer: Option C. -> nominal money, the price level, output and employment
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 84. Expansionary fiscal policy in the classical model will cause aggregate demand to _______ potential output?

exceeds
fall below
fluctuate around
remain equal to

Discuss Question

Answer: Option D. -> remain equal to
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 85. In the classical model, potential output cannot be increased by ?

monetary growth
better technology
more capital
higher labor supply

Discuss Question

Answer: Option A. -> monetary growth
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 86. All the following are types of monetary policy expect ?

a nominal money stock target
a balanced budget
an inflation target
The pursuit of a target real interest rate

Discuss Question

Answer: Option B. -> a balanced budget
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 87. The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?

the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving simi
employment contracts that stipulate workers’ wages usually for a period of one to three years
unspoken agreements between workers and firms that firms will not cut wages
the incentive that firms may have to hold wages above the market clearing rate

Discuss Question

Answer: Option A. -> the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving simi
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 88. Doubts about the natural and the existences of the Phillips curve arose in the 1970s when the economy experienced ?