A. that monetary policy affects aggregates demand
B. that markets do not clear quickly
C. that fiscal policy affects aggregate demand
D. of rational expectations.
Related Mcqs:
- 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 - The classical view of the labor market is basically consistent with the assumption of _________ aggregate supply curve?
A. a vertical (or almost vertical)
B. a downward sloping
C. a horizontal (or almost horizontal)
D. an upward sloping - Macroeconomics deals with?
A. the behavior of the electronics industry
B. the behavior of firms
C. economics aggregates
D. the activities of individual units - Macroeconomics is the study of ?
A. individual building blocks in the economy
B. the relationship between different sectors on the economy
C. household purchase decisions
D. the economy as a whole - Macroeconomics is the branch of economics that deals with ?
A. imperfectly competitive markets:
B. Only the long run adjustments to equilibrium in the economy
C. The functioning of individual industries and the behavior of individual decision-making units business firms and households
D. the economy as a whole - The key issues of macroeconomics are ?
A. unemployment
B. inflation
C. economic growth
D. All of the above - In macroeconomics, equilibrium is defined as that point at which ?
A. aggregate output equals consumption minus investment
B. saving equals consumption
C. Planned aggregate expenditure equals aggregate output
D. planned aggregate expenditure equals consumption - Which of the following statements about microeconomics and macroeconomics is not true ?
A. The study of very large industries is a topic within macroeconomics
B. Macroeconomics is concerned with economy-wide phenomena
C. Microeconomics is a building block for macroeconomics
D. Microeconomics and macroeconomics cannot be entirely separated - Which of the following is not an assumption of Schumpeter’s stationary state ?
A. Perfect competition
B. An economy below full employment
C. No savings or technical change
D. No entrepreneurial function is required - In which of the following cases is the assumption most reasonable ?
A. To address the impact to taxes on income distribution an economist assumes that everyone earns the same income.
B. To address the impact of money growth on inflation, an economist assumes that money is strictly coins.
C. To model the benefits of trade. an economist assumes that there are two people and two goods
D. To estimate the speed at which a beach ball falls, a physicist assumes that if falls in a vacuum.
