A. quickly
B. slowly
C. very infrequently
D. instantly
Aggregate Supply, Unemployment And Inflation
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
The natural rate of unemployment is generally thought to be the sum of ?
A. frictional unemployment and seasonal unemployment
B. frictional unemployment and cyclical unemployment
C. frictional unemployment and structural unemployment
D. cyclical unemployment and structural 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
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 Phillips curve is a graph showing the relationship between ?
A. the price level and the unemployment rate
B. the inflation rate and the unemployment rate
C. the level of aggregate output and the price level
D. the inflation rate and the level of aggregate demand
The view of the Phillips curve that prevailed in the 1960s implied that policies that ?
A. lower unemployment rate will tend to lower the inflation rate
B. lower unemployment rate will tend to raise the inflation rate
C. raise inflation rate will tend to raise the unemployment rate
D. lower inflation rate will tend to raise the unemployment rate
The expectations augmented Phillips curve was the Work of which group of economists ?
A. New classical economists
B. Keynesian.
C. Monetarists
D. Marxists.
An unspoken agreement between workers and firms that the firm will not cut wages is known as ?
A. an implicit or social contract
B. a relative-wage contract
C. employment at will
D. an explicit contract
Even though explicit contracts may lead to layoffs during recessions explicit contracts may still be efficient because such contracts ?
A. minimize negotiation costs
B. minimize unemployment effects
C. guarantee that only the least productive workers will be laid off.
D. will equitable spread the layoffs among junior and senior workers