MCQ: If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?

1. an increase in the level of output
2. a decrease in the unemployment rate
3. an increase in the rate of inflation
4. All of these answers

MCQ: Refer to Exhibit 4. If there is no tax placed on the produced in this market consumer surplus is the area ?

1. C + D + F
2. A
3. A + B + E
4. D + C + B

MCQ: Refer to Exhibit 4. If a tax is placed on the product in this market consumer surplus is the area ?

1. D
2. A
3. A + B + E
4. A + B +C + D

MCQ: Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the buyers is the area ?

1. B + C + E + F
2. B
3. B + C
4. A

MCQ: Refer to Exhibit 4. If there is no tax placed on the product in this market total surplus is the area ?

1. B + C + E + F
2. E + F
3. A + B + C + D
4. A + B + C + D + E + F

MCQ: Refer to Exhibit 4. If a tax is placed on the product in this market. deadweight loss is the area ?

1. B + C + E + F
2. E + F
3. B + C
4. A + B + C + D