A. the level of aggregate demand for goods and services.
B. prices and wages
C. interest rates
D. the quantity of money
Related Mcqs:
- According of Keynes, the level of employment is determined by ?
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 - 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 - In the classical model of Ricardo, the direction of trade is determined by ?
A. Absolute advantage
B. Comparative advantage
C. Physical advantage
D. Which way the wind blows - The exchange value of the U.S dollar is primarily determined by ?
A. the rate of inflation in the United States
B. the number of dollars printed by the U.S government
C. the international demand and supply for dollars
D. the monetary value of gold held at Fort Knox, Kentucky - An advocate of the classical model of the economy would claim that unemployment is created when the ____ is above its equilibrium level in the ______?
A. price level, aggregate economy
B. tax rate, government budget
C. wage rate, labor market
D. interest rate, market for loanable funds - 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 - According to the classical economists the economy ?
A. requires fine tuning to reach full employment
B. can never deviate from full employment
C. will never be at full employment
D. is self-correcting. - Consulting firms that use large-scale econometric models to forecast exchange rate movements are engaging in ?
A. judgmental analysis
B. fundamental analysis
C. technical analysis
D. nontechnical analysis
