1.
According to the model of aggregate supply and aggregate demand in the long run an increase in the money supply should cause ?

2.
Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers wished to move output to its long run natural rate they should attempt to ?

3.
Stagflation occurs when the economy experiences ?

4.
Suppose the economy is initially is long run equilibrium Then suppose there is a drought that destroys much of the wheat crop According to the model of aggregate demand and aggregate supply, what happens of prices and output in the short run ?

5.
Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the short run ?

6.
Suppose the price level falls but because of fixed nominal wage contracts the real wage rises and firms cut back on production This is a demonstration of the ?

7.
According to the wealth effect aggregate demand slopes downward (negatively) because ?

8.
Which of the following is not a reason why the aggregate demand curve slopes downward ?

9.
According to the interest rate effect aggregate demand slopes downward (negatively) because ?

10.
Policy makers are said to “accommodate” an adverse supply shock if they ?

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