A. An outward shift of aggregate demand- and demand-pull inflation
B. An outward shift of aggregate demand and cost push inflation
C. An outward shift of aggregate supply and demand-pull inflation
D. An outward shift of aggregate supply and cost push inflation
Related Mcqs:
- Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?
A. The upward accelerator
B. The downward multiplier
C. The upward PPF
D. The downward mpc - The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?
A. R&D generating welfare improved technology
B. development of more productive machinery
C. new work rules promoting workers efficiency
D. lower wages extracted from workers - Refer to Exhibit 6.Suppose the economy is in long-run equilibrium at point E. A sudden increase in government spending should move the economy in the direction of point ?
A. d
B. G
C. E
D. b - In the circular flow we would expect leakages to ___________ injections?
A. equal
B. be less than
C. be greater than
D. be less or greater than - Injections ?
A. Decrease aggregate demand
B. Always equal savings
C. Always equal national income
D. include investment and export spending - Injections are?
A. Assumed to be exogenous
B. Assumed to be a function of national income
C. Decrease aggregate demand
D. Decrease the investment into an economy - 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 - If injections are greater than withdrawals ?
A. National income will increase
B. National income will decrease
C. National income will stay in equilibrium
D. Price will fall - Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?
A. H
B. F
C. E
D. c - An economy that trades with and has financial dealing with other countries is called a/an ________ economy?
A. free-trade
B. autarkic
C. open
D. mixed
