A. increase the interest rate
B. increase the price level
C. decrease the price level
D. decrease the interest rate
Economics Mcqs
Reducing inflation is a more important objective than economic growth is an example of ?
A. Normative economics
B. Positive economics
C. Objective economics
D. Reality economics
The initial impact of an increase in government spending is to shift ?
A. aggregate demand to the right
B. aggregate demand to the left
C. aggregate supply to the right
D. aggregate supply to the left
The labour force can be defined as ?
A. Those who could claim benefit if they were to become unemployed.
B. The population between school leaving age and retirement age.
C. anyone who is working or actively seeking work
D. Those of working age who are seeking work and are available to for work at current wage rates.
An increase in the marginal propensity to consumer (MPC) ?
A. raises the value of the multiplier
B. has no impact on the value of the multiplier?
C. rarely occurs because the MPC is set by congressional legislation
D. lowers the value of the multiplier
An individual who is not working and who has given up looking for work is classfied as ?
A. a discouraged worker:
B. unemployed.
C. hard core unemployed.
D. unemployable
When an increase in government purchases raises incomes shifts money demand to the right raises the interest rate, and lowers investment we have seen a demonstration of ?
A. supply-side economics
B. None of these answers
C. The crowding-out effect
D. The multiplier effects
Cyclical unemployment is the ?
A. Portion of unemployment that is due to the normal working of the labour market
B. Portion of unemployment that is due to changes in the structure of the economy that results in a significant loss of jobs in certain industries.
C. Unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.
D. Unemployment that occurs during recessions and depressions.
Suppose the government increases its purchases by Rs16 billion. If the multiplier effect exceeds the crowding out effect, then ?
A. The aggregate supply curve shifts to the right by more than Rs 16 billion
B. The aggregate demand curve shifts to the left by more than Rs 16 billion
C. The aggregate demand curve shifts to the right by more than Rs 16 billion
D. the aggregate supply curve shifts to the left by more than Rs 16 billion
Which of the following is an automatic stabilizer ?
A. Spending on public schools
B. Military spending
C. All of these answers are automatic stabilizers
D. spending on the space shuttle
E. Unemployment benefits