Question 1

An increase in injections into the economy may lead to:

Accepted Answer

A) An outward shift of aggregate demand and demand-pull inflation 
B) An outward shift of aggregate demand and cost-push inflation 
C) An outward shift of aggregate supply and demand-pull inflation 
D) An outward shift of aggregate supply and cost-push inflation 
A) An outward shift of aggregate demand and demand-pull inflation 
B) An outward shift of aggregate demand and cost-push inflation 
C) An outward shift of aggregate supply and demand-pull inflation 
D) An outward shift of aggregate supply and cost-push inflation

Question 2

When output exceeds spending:

Accepted Answer

A) There is unsold output, and level of output will fall 
B) There is unsold output, and level of output will rise 
C) There is unsold output, and level of spending will rise 
D) There is no unsold output since the level of spending will rise 
A) There is unsold output, and level of output will fall 
B) There is unsold output, and level of output will rise 
C) There is unsold output, and level of spending will rise 
D) There is no unsold output since the level of spending will rise

Question 3

According to the Phillips curve, unemployment will return to the natural rate when:

Accepted Answer

A) Nominal wages are equal to expected wages 
B) Real wages are back at long-run equilibrium level 
C) Nominal wages are growing faster than inflation 
D) Inflation is higher than the growth of nominal wages 
A) Nominal wages are equal to expected wages 
B) Real wages are back at long-run equilibrium level 
C) Nominal wages are growing faster than inflation 
D) Inflation is higher than the growth of nominal wages

Question 4

What is the cause of inflation?

Accepted Answer

A) If money supply increases. 
B) If the production rate falls. 
C) If money supply increases and production falls. 
D) Both money supply and production decreases. 
A) If money supply increases. 
B) If the production rate falls. 
C) If money supply increases and production falls. 
D) Both money supply and production decreases.

An increase in injections into the economy may lead to:

When output exceeds spending:

According to the Phillips curve, unemployment will return to the natural rate when:

What is the cause of inflation?

Economics : Macroeconomics, Factors, Goods, and Indicators

Understanding National Income, GDP, and Economic Sectors in India

National Income and Final Goods

Money and Monetary Policy: Understanding the Characteristics and Functions of Currency and Government Securities

Money and Inflation

Economics and Public Finance

Understanding Public Finance and Business Cycles

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Exam 6: Macroeconomic Concepts and Theories

An increase in injections into the economy may lead to:

When output exceeds spending:

According to the Phillips curve, unemployment will return to the natural rate when:

What is the cause of inflation?

Economics : Macroeconomics, Factors, Goods, and Indicators

Understanding National Income, GDP, and Economic Sectors in India

National Income and Final Goods

Money and Monetary Policy: Understanding the Characteristics and Functions of Currency and Government Securities

Money and Inflation

Economics and Public Finance

Understanding Public Finance and Business Cycles

Filters