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.Management Sciences
Category: Aggregate Supply, Unemployment And Inflation
The equilibrium inflation rate is determined by the intersection of _____ and _____?
A. demand, supply
B. IS, LM
C. AD, AS
D. Labor demand, labor supply
A person who is made redundant because of the contraction of an industry is a victim of ?
A. frictional unemployment
B. demand-deficient unemployment
C. classical unemployment
D. structural unemployment
According to the classical economists, those who are not working ?
A. have chosen not to work at the market wage
B. have given up looking for a job but would accept a job at the current wage if one were offered to them.
C. are too productive to be hired at the current wage
D. are unable to find a job at the current wage rate
In the classical model, potential output cannot be increased by ?
A. monetary growth
B. better technology
C. more capital
D. higher labor supply
Those who hold the classical view of the labor market are likely to believe that ?
A. neither monetary nor fiscal policy will have an effect on output and employment
B. monetary but not fiscal policy will have an effect on output and employment
C. Fiscal, but not monetary policy will have an effect on output and employment
D. both monetary and fiscal policy will have an effect on output and employment
Which school of economic thought suggested that one possible cause of inflation was a ‘push’ from the cost side ?
A. New classical economists
B. Keynesian.
C. Marxists
D. Monetarists
The long-run Phillips curve is ____ at the ____?
A. horizontal, natural rate of inflation
B. horizontal natural rate of unemployment
C. vertical natural rate of inflation
D. vertical equilibrium rate of unemployment
The measured unemployment rate can be pushed below the natural rate, but ?
A. only in the short run, and not without inflation
B. only in the long run and not without inflation
C. only is the short run and only if the price level is constant
D. only in the long run and only if the price level is constant
The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?
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 similar cuts
B. employment contracts that stipulate workers’ wages usually for a period of one to three years
C. unspoken agreements between workers and firms that firms will not cut wages
D. the incentive that firms may have to hold wages above the market clearing rate
In the long run, the Phillips curve will be vertical at the natural rate of unemployment if ?
A. the long-run aggregate demand curve is horizontal at the natural rate of inflation
B. the long run aggregate demand curve is vertical at potential GDP
C. the long run aggregate demand curve is vertical at potential GDP
D. The long run supply curve is horizontal at the natural rate of inflation
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