Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be __________ and the LM curve must be __________?

Related Mcqs:

1. If The Central bank tries to keep the interest rate constant when the economy is operating on the steep part of the AS curve, _________ will occur?

   A. a hyperinflation
   B. a depression
   C. stagflation
   D. a recession

2. Suppose that the demand curve for tin is highly inelastic. If the supply curve of tin decrease and increase cyclically along the demand curve for tin then in this market the size of the price fluctuation will be __________ the size of the quantity fluctuations?

   A. relatively greater then
   B. relatively less than
   C. the same as
   D. any of the above

3. Suppose that the supply curve of tin is highly inelastic. If the demand curve of tin decrease and increase cyclically along the supply curve of tin, then in this market the size of the quantity fluctuation will bathe size of the price fluctuations ?

   A. relatively greater than
   B. relatively less than
   C. the same as
   D. Any of the above

4. The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?

   A. At their lowest points
   B. When they are declining
   C. When they are increasing
   D. When marginal revenue is zero

5. In the short run, the competitive firm’s supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?

   A. Upward-sloping portion of the average total cost curve
   B. upward-sloping portion of the average variable cost curve
   C. portion of the marginal cost curve that lies above the average total cost curve.
   D. entire marginal cost curve.
   E. portion of the marginal-cost curve that lies above the average variable cost curve

6. Suppose we measure the quantity of good X on the horizontal axis and the quantity of good Y on the vertical axis If indifference curves are bowed inward, as we move from having an abundance of good X to having an abundance of good Y, the marginal rate of substitution of good Y for good X (the slope of the indifference curve) ?

   A. rises
   B. stays the same
   C. could rise or fall depending on the relative prices of the two goods.
   D. falls

7. If the Supply of loanable funds is very inelastic (steep) Which policy would likely increase saving and investment the most ?

   A. a reduction in the budget deficit
   B. an increase in the budget deficit
   C. an investment tax credit
   D. None of the above

8. Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by ?

   A. An fall in demand
   B. An increase in supply
   C. improvements in production technology
   D. An increase in demand

9. For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?

   A. SMC, LMC
   B. SMC above SAVC, LMC above LAC
   C. SMC below SAVC, LMC above LAC
   D. SMC below SAVC, LMC bellow LAC

10. Demand curves are derived while holding constant ?

    A. incomes, tastes, and the price of other goods.
    B. income, tastes, and the price of the good.
    C. income and tastes
    D. tastes and the price of other goods