The multiplier accelerator model assumes ____ depends on ______?

Related Mcqs:

1. If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

   A. falls; rise; falls; surplus B. is static; low; rise; deficit; C. falls; falls; falls; surplus D. rise; falls; rises; deficit...

2. The accelerator assumes ?

   A. The marginal propensity to consume is constant B. The economy is at full employment C. There is a constant relationship between net investment and the rate of change of output D. The multiplier is constant...

3. The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?

   A. long run, short run B. flexible imperfect markets C. short-term long run D. long run, imperfect markets...

4. 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...

5. The kinked demand curve model of oligopoly assumes the elasticity of demand ?

   A. in response to a price increase is less elastic than the elasticity of demand in response to a price decrease B. is perfectly elastic if price increases and perfectly inelastic if price decreases C. is constant regardless of whether price increase of decrease. D. in response to a price increases is more elastic than...

6. The marginal product model assumes that ?

   A. individuals pay the full cost of their education B. government subsidizes schooling C. education persons migrate more D. capital and unskilled labor are complements...

7. The classical model of macroeconomics assumes ?

   A. wages and prices are sticky B. wages and prices are flexible C. the economy may operate below full capacity D. the economy is always at full capacity E. A and C F. B and D...

8. If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ______ inflation ______ and the current account of the balance of payments is likely to move towards ________?

   A. falls; falls; falls; surplus B. falls; rises; falls; surplus C. is static; low; rises; deficit D. rises; falls; rises; deficit...

9. The accelerator theory of investment says that induced investment is determined by ?

   A. the level of national income B. the level of aggregate demand C. the rate of change of national income D. expectations...

10. Automatic stabilisers act to ____ government expenditures and ____ government revenues during recessions ?

    A. increase: increase B. decrease; decrease C. increase; decrease D. decrease; increase...