A. the behaviour of trade unions.
B. the quantity of money
C. price and wages
D. the level of aggregate demand for goods and services
Related Mcqs:
- According to classical models, the level of employment is determined primarily by ?
A. the level of aggregate demand for goods and services.
B. prices and wages
C. interest rates
D. the quantity of money - Keynes liquidity preference theory of the interest rate suggests that the interest rate is determined by ?
A. aggregate supply and aggregate demand
B. the supply and demand for loanable funds
C. the supply and demand for money
D. the supply and demand for labor - How is termed the economic theories or Maynard Keynes especially those which advocate government monetary and fiscal and stimulate business activity ?
A. Market Economy
B. Harvard Group
C. Keynesian
D. London Group - Macroeconomic theory that emphasized the theories of Keynes and de-emphasized the classical theory developed as the result of the failure of ?
A. economic theory to explain the simultaneous increases in inflation and unemployment during the 1970s
B. The classical model to explain the prolonged existence of high unemployment during the Great Depression
C. fine tuning during the 1960s
D. the economy to grow at a rapid rate during the 1950s - Keynes suggested that decisions to consume and save were based on ?
A. previous decisions
B. absolute income
C. relative income
D. permanent income - If injections are less than withdrawals at the full-employment level of national income, there is ?
A. an inflationary gap
B. hysteresis
C. A deflationary gap
D. hyperinflation - A group of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the ?
A. Keynesians
B. post-keynesians
C. monetarists
D. new classical school - The equilibrium level of aggregate output is determined in ?
A. the goods and labor markets.
B. the goods market
C. the money markets
D. the money and labor market - In the short run the level of floating exchange rates is determined mainly by ?
A. interest rates
B. competitiveness
C. trade
D. speculation - Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?
A. the absorption approaches
B. the Marshall Lerner approach
C. the monetary approach
D. the elasticities approach
