Question 1
In the long run Classical view, AD increase at Yfe causes:
A.
Higher prices only B.
Lower unemployment permanently C.
Higher real output only D.
Trade surplus only
Question 2
The Phillips curve illustrates conflict between:
A.
PED and PES B.
Exports and imports only C.
Tax and subsidies only D.
Inflation and unemployment
Question 3
What is meant by unemployment vs inflation?
A.
Lower unemployment may mean higher inflation in SR. B.
Higher output may raise emissions. C.
Rising AD may worsen current account. D.
Classic policy dilemma.
Question 4
What is meant by phillips curve trade-off?
A.
Higher output may raise emissions. B.
Lower unemployment may mean higher inflation in SR. C.
Policies may help SR but harm LR. D.
Benefits years ahead; SR pain possible.
Question 5
What is meant by growth vs inflation?
A.
Growth may widen inequality. B.
Lower unemployment may mean higher inflation in SR. C.
Rising AD may worsen current account. D.
Rapid AD growth may overheat economy.
Question 6
Rapid demand-side growth may worsen:
A.
Productivity always B.
Only supply-side capacity C.
Inflation and the current account D.
Only LRAS
Question 7
What is meant by fiscal vs monetary mix?
A.
Benefits years ahead; SR pain possible. B.
Rising AD may worsen current account. C.
Coordination or duplication. D.
Policies may help SR but harm LR.
Question 8
What is meant by short run vs long run?
A.
Benefits years ahead; SR pain possible. B.
Higher output may raise emissions. C.
Policies may help SR but harm LR. D.
Growth may widen inequality.
Question 9
What is meant by growth vs equity?
A.
Electoral cycle affects policy choice. B.
Policies may help SR but harm LR. C.
Coordination or duplication. D.
Growth may widen inequality.
Question 10
Supply-side policies may reduce conflict by:
A.
Banning monetary policy B.
Eliminating all trade C.
Removing all taxes D.
Raising capacity while limiting inflation
Back to practice 