The income tax rate rises from 30% to 40% on income above Rs30,000. If a person earns Rs31,000, what is her marginal tax rate?
Correct answer D. 40%
Topic / 43 questions
Aggregate Supply, Unemployment And Inflation MCQs
Page 2 of Aggregate Supply, Unemployment And Inflation multiple-choice questions with answers. Tap an option to check yourself.
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- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
The classical view of the labour market fits best with which shape of aggregate supply curve?
Correct answer C. A vertical (or almost vertical)
According to classical economists, people who are not working are in what position?
Correct answer B. Have chosen not to work at the market wage
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In the long run, the Phillips curve will be vertical at the natural rate of unemployment if which condition holds?
Correct answer A. The long-run aggregate supply curve is vertical at potential GDP
Potential GDP is the level of aggregate output that can be achieved in what way?
Correct answer B. That can be sustained in the long run without inflation
What relationship does the Phillips curve indicate?
Correct answer C. Negative relationship between the inflation rate and the unemployment rate
If input prices adjusted very quickly to output prices, as classical economists argue, what shape would the Phillips curve take?
Correct answer A. Vertical or nearly vertical
In the 1970s, doubts arose about the Phillips curve because the economy experienced what?
Correct answer C. Simultaneously high rates of inflation and unemployment
When economists speak of real business cycle theory, what do they say causes business cycles?
Correct answer B. Shifts in aggregate supply
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What does the relative-wage explanation for downwardly sticky wages emphasise?
Correct answer B. 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
Which of the following is not a type of monetary policy?
Correct answer B. A balanced budget
According to the AD schedule, how is inflation related to output?
Correct answer D. Higher, lower
In the classical model, which of these cannot increase potential output?
Correct answer D. Monetary growth
When equilibrium is reached where AD meets AS, in which markets is equilibrium achieved?
Correct answer D. All of these
In the classical model, what happens to aggregate demand relative to potential output after an expansionary fiscal policy?
Correct answer C. Remain equal to
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According to the quantity theory of money, changes in one variable lead to equal changes in a second but have no effect on a third. Which are they?
Correct answer A. Nominal money, the price level, output and employment
When inflation and interest rates are both rising, what would we expect to happen to the demand for real money balances?
Correct answer A. Fall
The Phillips curve shows a trade-off between which two variables?
Correct answer C. The inflation rate, the unemployment rate
A shift in the short-run Phillips curve can be caused by changes in what?
Correct answer D. Inflationary expectations
Someone made redundant because their industry is shrinking suffers from which type of unemployment?
Correct answer D. Structural unemployment