Mult. Question 08/11 Flashcards
In the short term, contraction fiscal policy is most likely to cause
A rise in unemployment
Which of the following is mostly likely to lead to an increase in structural unemployment in the uk?
The improving international competitiveness of the Chinese and Indian economics
Which is following is most likely to be an example of a supply-side policy?
A reduction in company taxes to encourage greater investment
Aggregate demand may fall as a result of a decrease in
The government’s budget deficit ( G will spent from tax receiving, got less spend less )
A county experience both unemployment and persistent surpluses in the balance of payments. Which of the follow. is most lik. both to increase employment and to reduce a balance of payments surplus?
Increasing G expenditure
Cost-push inflation
Is caused by raised input price( increase in raw material,labour will cause inflation)
A G wishing to reduce the level of unemployment through the use of fiscal policy would be most likely to
Increase the size of the budget deficit
If an economist wishes to make a distinction between real and money national income, which one of the follow. would have to be considered ?
The rate of inflation
Per capita GDP is a baseline measure of the standard of living. It equals
GDP divided by the total population
All but one of the follow. ate usually regarded as objectives of macroeconomic policy. What is the exception
Increasing the output of the financial services industry
A recession is said to occur in the UK economy when
Real national output falls for two successive quarters
All other things being equal, an increase in the productivity of labour in an economy will lead to
A rightward shift of the aggregate supply curve
All other things being equal, when an increase in export leads to a larger increase in national income, this illustrates
The operation of the multiplier
In the short run, a decrease in aggregate demand is most likely to result in a reduction in
The balance of payments deficit on the current account
An economy is operating at full employment. Which one of the following is most likely to lead to an increase unreal national output without an increase in the rate of inflation in short term
An increase in manufacture productivity
