The Phillips Curve & Taxation Mcqs
The Phillips Curve & Taxation Mcqs, this topic has 52 mcqs, It takes five to ten minutes to complete this free The Phillips Curve & Taxation Mcqs test. You will see 4 or 5 option of each question. You must choose / think only one option and then press on answer key for check right answer. Practice "The Phillips Curve & Taxation Mcqs" MCQs and share with your friends, brothers, sisters.
The Phillips Curve & Taxation Mcqs (Total Quiz: 52)
MCQ: If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ?
- a reduction in output of 20 percent
- a reduction in output of 5percent
- a reduction in output of 15 percent
- a reduction in output of 35 percent
A
MCQ: Refer to Exhibit 6. Suppose the economy is operating at point (D) As people revise their price expectations ?
- The short-run Phillips curve will shift in the direction of the short-run Phillips curve associated with an expectation of 3 percent inflation
- The short-run Phillips curve will shift in the direction of the short-run Phillips curve associated with an expectation of 9 per cent inflation
- The short-run Phillips curve will shift in the direction of the short-run Phillips curve associated with an expectation of 6 percent inflation
- The long-run Phillips curve will shift to the left
D
MCQ: Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. In the long run a monetary contraction will move the economy in the direction of point ?
- F
- a
- H
- I
C
MCQ: Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?
- H
- c
- d
- F
D
MCQ: The natural rate hypothesis argues that ?
- in the long run the unemployment rate returns to the natural rate, regardless of inflation
- Unemployment is always below the natural rate
- Unemployment is always above the natural rate
- Unemployment is always equal to the natural rate
A
MCQ: When actual inflation exceeds expected inflation ?
- Unemployment is equal to the natural rate of unemployment
- People will reduce their expectations of inflation in the future
- Unemployment is greater than the natural rate of unemployment
- Unemployment is less than the natural rate of unemployment
D
MCQ: An increase in expected inflation ?
- shifts the short run Phillips curve downward and the unemployment inflation trade-off is less favorable.
- shifts the short-run Phillips curve upward and the unemployment inflation trade-off is more favorable
- Shift the short-run Phillips curve downward and the unemployment inflation trade-off is more favorable
- Shifts the Short run Phillips curve upward and the unemployment inflation trade-off is less favorable
D
MCQ: If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?
- is vertical
- is negatively sloped
- has a slope that is determined by how fast people adjust their price expectations
- is positively sloped
A
MCQ: The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increase price and ?
- decreases unemployment
- decrease growth
- increases unemployment
- decreases inflation
A
MCQ: The misery index Which some commentators suggest measures the health of the economy, is ?
- The sum of the growth rate of output and the inflation rate
- The sum of the natural rate of unemployment and the actual rate of unemployment
- The sum of the inflation rate and the central bank’s refinancing rate
- The sum of the unemployment rate and the inflation rate
D