SOLVE MCQS NO EXPLANATION PLEASE

1.

During business cycles the opposite of a trough isRequired to answer. Single choice.

contraction

a peak

expension

2.

Inventoryis classified as a ..............on a company's balance sheetRequired to answer. Single choice.

previous assets

current asset

3.

_______a major weapon of the monetary policy

used to control the demand and supply of money in theRequired to answer. Single choice.

reserve requirement

credit control

4.

what are the components of income____________________Required to answer. Single choice.

Y=C + I + G + NX

Y=C + I + G + Imp

Y=C + I + G +exp

5.

Increasing interest rates is a tool of which policy?Required to answer. Single choice.

Contractionary Monetary policy

Expansionary fiscal policy

Expansionary Monetary policy

6.

Demand has increased for goods and services. How would this be represented on a demand curve?Required to answer. Single choice.

A shift down

A shift to the right

A shift to the left

7.

An example of a transfer payment is Required to answer. Single choice.

unemployment benefits

rent

profit

8.

A recession occurs when real GDP ________Required to answer. Single choice.

increases

decreases

9.

Okun's law says, when cyclical unemployment increases from 2 to 4%, the output gap increases from ___ %.Required to answer. Single choice.

(1 Point)

-2 to -4

4 to 8

2 to 4

51.

What happens to the APC as DI rises?__________Required to answer. Single choice.

Increase

Decrease

52.

What happens to MPC as income rises? ___________Required to answer. Single choice.

Increase

decrease

remains same

53.

The CPI is the price of this basket of goods relative to the price of the same basket in _______________Required to answer. Single choice.

next year

base year

54.

Demand-pull inflation is said to exist whenRequired to answer. Single choice.

Input Costs are increasing faster than output

The prices of imports are rising faster than domestic goods

The level of aggregate demand is growing faster than the underlying level of supply

56.

Which of the following would not influence the rate of inflation?Required to answer. Single choice.

The rate at which prices are rising

Whether the rate was expected

The number of people affected by inflation

57.

Development of technology shifts the investment demand curve to the rightRequired to answer. Single choice.

true

false

59.

If policy makers choose to try to move the economy out of a recession, they should use their policy tools to decrease aggregate demandRequired to answer. Single choice.

False

True

60.

What is the best definition of cost-push inflation?Required to answer. Single choice.

Price rising due to an increase in the price of a firm's inputs.

Price rising due to an excessive growth in aggregate spending

61.

Full Employment has been ranked among the

foremost objectives of ............Required to answer. Single choice.

Monetary policy

Fiscal policy

trade policy

62.

Increasing average labor productivity means the amount of output produced per unit of labor inputRequired to answer. Single choice.

True

False

63.

The main determinants of investment areRequired to answer. Single choice.

interest rate

expected rate of return

both of above