Trang chủ 5. Test - Economics - No 1





An economy is currently operating at full employment, with an inflation rate of 6%. The Central Bank adopts an inflationary measure consistent with an inflation rate of 8% but people anticipate an inflation of 7%. Then, the unemployment in the short run will be ________ the natural rate, as predicted by the Rational Expectations Model.

Which of the following would increase GDP?

If the marginal propensity to consume (MPC) is .75 or 3/4, what is the expenditure multiplier?

Which of the following would be an example of non-activist monetary policy?

"Counter-cyclical macroeconomic policy will be ineffective as a stabilization tool because people will undermine the policy by adjusting their choices once they expect a systematic policy response to recessions and booms." This statement most clearly reflects the

An economy which is experiencing substantial inflation and slow economic growth is said to be in:

Congress proposes to stimulate the economy by cutting taxes for middle income families but raising taxes for wealthier tax payers. The effect will be the same net taxes collected, but most tax payers would pay less in taxes. According to which of the following economic theories would this stimulate the economy? I. Fiscal policy II. Supply-side III. Monetary policy

An increase in the nominal interest rate would

An increase in the long-run aggregate supply curve indicates that

Which of the following will most likely occur in the short run when the long-run equilibrium of an economy is disturbed by an unanticipated decrease in aggregate demand?

In year 0, $10 could purchase a certain basket of goods. In year 20, the identical basket of goods cost $36. What was the average annualized inflation rate during this period?

Which of the following would increase GDP?

Higher unemployment insurance benefits tend to increase unemployment because they

Which one of the following would be classified as employed?

If unemployment was deemed too high by policy makers, which of the following policy tools might be utilized?

Countries A and B have the same monetary base and reserve requirement. People in A tend to hold more currency than people in B. The money supply will be:

According to Say's law, there cannot be overproduction of goods and services because

The crowding-out model implies that a

Within the Keynesian model, equilibrium output takes place ________.

If a broad increase in the price of stocks causes an increase in the real wealth of individuals, then the