Please help me with the following multiple choice questions please.

a. The misery index for Canada

• increased steadily from 1970 to 1990, but has since declined
• is closely but inversely related to the successes of the incumbent party
• is closely and positively related to the successes of the incumbent party
• is only loosely and inversely related to the successes of the incumbent party
• is not a good predictor of the successes of the incumbent party

b. Stagflation, that is, high unemployment combined with high inflation

• cannot persist, since the economy eventually will return to full employment
• can only occur if expansionary monetary policy is combined with restrictive fiscal policy
• is inconsistent with the inflation-expectations-augmented Phillips curve
• cannot occur as long as the expected inflation rate is above the actual inflation rate
• can only occur during the period of economy expansion

c. Which of the following is the most likely medium-run outcome of an adverse supply shock?

• an increase in consumer prices and a higher level of real GDP
• a decrease in real GDP
• an increase in real wage rates
• an increase in frictional unemployment
• an increase in nominal GDP with real GDP remaining the same

d. The misery index is constructed by

• adding the inflation rate and the unemployment rate
• multiplying the inflation rate with the unemployment rate
• dividing the inflation rate by the unemployment rate
• adding the sacrifice ratio and the replacement rate
• combining the sacrifice ratio with the unemployment rate

e. In the long run, monetary expansion should have the following result:

• nominal wages change in proportion to nominal money supply
• real interest rates remain constant
• real wages remain constant
• nominal wages and prices change in proportion to nominal money supply
• all of these are results from the monetary expansion

f. In the coordination approach to the Phillips curve, wages are considered to be sticky rather than flexible since

• firms encounter menu costs when changing wages but not when changing prices
• labour contracts contain cost-of-living adjustments
• firms tend to look at labour as an expendable resource
• firms are unsure about their competitors' behavior and only reluctantly change prices and wages following a change in aggregate demand
• the labour market involve long term contracts between firms and workers

g. In the static AD-AS model, what is the most likely long-run outcome of an oil price increase, if no policy change is implemented?

Multiple Choice

• real wages will decline while the levels of output and prices will remain unchanged
• the level of prices will increase while the level of output will remain unchanged
• the natural unemployment rate and the price level will both increase
• nominal wages and prices will increase, but real wages will remain unchanged
• real money balances and real wages will decline while nominal wages will remain unchanged

h. Suppose an increase in oil prices is accompanied by a decline in the level of potential output. Which of the following is the most likely long-run effect?

• real GDP will decrease but prices will increase
• real GDP and prices will both decline
• real GDP will remain the same but prices will increase
• real GDP will remain the same but nominal GDP will decrease
• the unemployment rate and prices will both decrease

i. The inverse relationship between inflation and unemployment is called

• Okun's law
• the Lucas curve
• the Phillips curve
• the replacement ratio
• the sacrifice ratio

j. If the government stimulates aggregate demand in response to a permanent adverse supply shock

• the inflation rate will increase but frictional unemployment will decrease
• the unemployment rate will increase but the inflation rate will decline
• an increase in unemployment can be avoided but only at the cost of increased inflation
• high inflation can be avoided but the rate of unemployment will increase
• the inflation and the unemployment rates will reduce simultaneously