Question 1
What is meant by productivity?
A.
Higher productivity shifts SRAS right. B.
Higher taxes on firms raise costs → SRAS left. C.
Weaker currency raises import costs → SRAS left. D.
Short-run aggregate supply — upward sloping.
Question 2
Higher oil prices tend to:
A.
Shift AD right only B.
Shift SRAS left C.
Increase exports only D.
Reduce national debt
Question 3
What is meant by sr equilibrium?
A.
Short-run aggregate supply — upward sloping. B.
Weaker currency raises import costs → SRAS left. C.
Higher productivity shifts SRAS right. D.
Where AD intersects SRAS.
Question 4
Higher productivity shifts:
A.
BoP deficit only B.
SRAS to the right C.
PPF inward D.
AD left only
Question 5
Cost-push inflation is caused by:
A.
Higher exports only B.
SRAS shifting left C.
AD falling only D.
LRAS shifting right
Question 6
What is meant by supply shock?
A.
Weaker currency raises import costs → SRAS left. B.
Sudden change in costs or availability of inputs. C.
Short-run aggregate supply — upward sloping. D.
Higher taxes on firms raise costs → SRAS left.
Question 7
What is meant by exchange rate?
A.
Sudden change in costs or availability of inputs. B.
Weaker currency raises import costs → SRAS left. C.
Short-run aggregate supply — upward sloping. D.
Where AD intersects SRAS.
Question 8
What is meant by movement along sras?
A.
Higher taxes on firms raise costs → SRAS left. B.
Where AD intersects SRAS. C.
Short-run aggregate supply — upward sloping. D.
Change in output due to price level along curve.
Question 9
SRAS slopes upward because:
A.
AD always equals LRAS B.
Imports are zero C.
Higher price levels encourage greater output in the short run D.
MPC equals 1
Question 10
What is meant by sticky wages?
A.
Short-run aggregate supply — upward sloping. B.
Oil, commodities shift SRAS. C.
Weaker currency raises import costs → SRAS left. D.
Wages slow to fall in downturn (Keynesian view).
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