📊Economics MCQs
Economics MCQs
451 MCQs231
If a person thinks they are better off after a 10% wage increase, and all prices have risen 10% then they are experiencing ?
Ainflation
Ba supply shock
Ccrowding out
Dinflation illusion
232
The classical model of macroeconomics assumes ?
Awages and prices are sticky
Bwages and prices are flexible
Cthe economy may operate below full capacity
Dthe economy is always at full capacity E. A and C F. B and D
233
Doubts about the natural and the existences of the Phillips curve arose in the 1970s when the economy experienced ?
Aa high rate of inflation: along with a low rate of unemployment
Bsimultaneously low rates of inflation and unemployment
Csimultaneously high rates of inflation and unemployment
Da high rate of unemployment along with a low rate of inflation
234
If input price prices adjusted very rapidly to output prices as classical economists argue the Philips curve would be ?
AVertical or nearly vertical
Bupward sloping
Cdownward sloping
Dhorizontal or nearly horizontal
235
The Phillips curve indicates that there is a ?
Anegative relationship between the inflation rate and labor demand
Bpositive relationship between labor supply and the inflation rate
Cpositive relationship between the inflation rate and the employment the
Dnegative relationship between the inflation rate and the unemployment rate
236
Potential GDP is the level of aggregate output ?
Athat can be produced if structural unemployment is zero
Bthat can be produced at a zero-unemployment rate
Cthat can be sustained in the long run without inflation
Dthat can be sustained in the long run, if the inflation rate is zero
237
In the long run, the Phillips curve will be vertical at the natural rate of unemployment if ?
Athe long-run aggregate demand curve is horizontal at the natural rate of inflation
Bthe long run aggregate demand curve is vertical at potential GDP
Cthe long run aggregate demand curve is vertical at potential GDP
DThe long run supply curve is horizontal at the natural rate of inflation
238
According to the classical economists, those who are not working ?
Ahave chosen not to work at the market wage
Bhave given up looking for a job but would accept a job at the current wage if one were offered to them.
Care too productive to be hired at the current wage
Dare unable to find a job at the current wage rate
239
The classical view of the labor market is basically consistent with the assumption of _________ aggregate supply curve?
Aa vertical (or almost vertical)
Ba downward sloping
Ca horizontal (or almost horizontal)
Dan upward sloping
240
Possible causes of involuntary unemployment are ?
Aminimum wage agreements
Btrade
Cscale economies
Dinsider-outsider distinctions E. efficiency wages F. all of the above