1 Which of the following actions is notan example of expansionary fiscal policy?

Select one:

a. An increase in government spending

b. Decrease in tax

c. An increase in tax

d. All of the given options

2 Which one can best explain the economic effects of inflation?

Select one:

a. Creates grievances and hence uprising

b. Discourages savings and hence investment

c. None of the given options

d. Redistribute wealth from lenders to borrowers

3 Question text

Which one of the following can best explain unemployment?

Select one:

a. Unemployed group of people out of the total population

b. Unemployed group of people who are actively searching for jobs out of the total work force

c. Unproductive group of people out of the total population

d. Unemployed group of people out of the total work force of the population

4 Which one of the following is a cause of cost push inflation?

Select one:

a. Increase in profit margins

b. Increase in government spending

c. Increase in export earnings

d. Increase in money supply

5 Which one of the following is not a cause of demand pull inflation?

Select one:

a. Arise in spending on capital goods

b. An increase in the money supply

c. An increase in spending on consumer goods

d. A fall in the spending on public goods

6 Which one of the following is not a consequence of inflation?

Select one:

a. Economic effect

b. Agricultural effect

c. Distribution effect

d. Political and Social effect

Clear my choice

7 Which one of the following is not categorized as a form of unemployment?

Select one:

a. Frictional unemployment

b. Cyclical unemployment

c. Reasonable unemployment

d. Seasonal unemployment

Clear my choice