📊Economics MCQs
Economics MCQs
451 MCQs221
Those who hold the classical view of the labor market are likely to believe that ?
Aneither monetary nor fiscal policy will have an effect on output and employment
Bmonetary but not fiscal policy will have an effect on output and employment
CFiscal, but not monetary policy will have an effect on output and employment
Dboth monetary and fiscal policy will have an effect on output and employment
222
If somebody is prepared to work at the going wage rate but cannot find work then they are victims of ?
Avoluntary unemployment
Bclassical unemployment
Cvoluntary unemployment
DFrictional unemployment
223
We would normally expect the size of the labor force to be _____ than the number or workers willing to accepts job offers at any real wage rate ?
ASmaller
BLarger
Cthe same size
DNone of these
224
An advocate of the classical model of the economy would claim that unemployment is created when the ____ is above its equilibrium level in the ______?
Aprice level, aggregate economy
Btax rate, government budget
Cwage rate, labor market
Dinterest rate, market for loanable funds
225
The costs of inflation are ?
Ashoe leather costs
Bmenu costs
Cincome redistribution
Duncertainly E. all of the above
226
The long-run Phillips curve is ____ at the ____?
Ahorizontal, natural rate of inflation
Bhorizontal natural rate of unemployment
Cvertical natural rate of inflation
Dvertical equilibrium rate of unemployment
227
Governments may contribute to inflationary pressure because of building up large ?
Anumbers of employees
Bwelfare plans
Cbudget deficits
Dexpenditures
228
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 ?
Afall
Bincrease
Cremain the same
Dfluctuates
229
The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?
Along run, short run
Bflexible imperfect markets
Cshort-term long run
Dlong run, imperfect markets
230
The equilibrium inflation rate is determined by the intersection of _____ and _____?
Ademand, supply
BIS, LM
CAD, AS
DLabor demand, labor supply