Students who failed in the second test of Macroeconomic pls complete it and submit to before 31 OCT 2008.



Name:
Student ID:
handphone:

Quick Quiz


1
In the AD-AS model, demand-pull inflation occurs because of an increase in aggregate demand that will eventually produce
A)
An increase in real wages, thus a decrease in the short-run aggregate supply curve
B)
An increase in nominal wages, thus an increase in the short-run aggregate supply curve
C)
A decrease in nominal wages, thus a decrease in the short-run aggregate supply curve
D)
An increase in nominal wages, thus a decrease in the short-run aggregate supply curve

2
In the short run, demand-pull inflation increases real
A)
Output and decreases the price level
B)
Wages and nominal wages
C)
Output and price level
D)
Wages and decreases nominal wages

3
In the long run, demand-pull inflation
A)
Decreases real wages
B)
Increases prices
C)
Increases the rate of unemployment
D)
Decreases real output

4
A probable result of a government trying to reduce unemployment associated with cost-push inflation through stimulative fiscal policy or monetary policy is
A)
An inflationary spiral
B)
A recession
C)
disinflation
D)
stagflation

5
What will occur if a government adopts a hands-off approach to cost-push inflation?
A)
An increase in real output
B)
A fall in unemployment
C)
Demand-pull inflation
D)
A recession

6
If prices and wages are flexible, a recession will increase real wages as prices fall. Eventually, nominal wages will
A)
Fall to the previous real wages and the short-run aggregate supply will increase
B)
Rise to the previous real wages and the short-run aggregate supply will increase
C)
Fall to the previous real wages and the short-run aggregate supply will decrease
D)
Rise to the previous real wages and the short-run aggregate supply will decrease

7
The traditional Phillips curve is based on the idea that with a constant short-run aggregate supply curve, the greater the increase in aggregate demand
A)
The greater the increase in the unemployment rate
B)
The greater the increase in the rate of inflation
C)
The greater the increase in real output
D)
The smaller the increase in nominal wages

8
The Phillips Curve for the 1960's shows the
A)
Inverse relationship between the rate of inflation and the rate of unemployment
B)
inverse relationship between nominal prices and real wages
C)
Direct relationship between unemployment and demand-pull inflation
D)
Trade-off between the short-run and long-run

9
Assuming aggregate demand remains constant, supply shocks that cause a leftward shift in the aggregate supply curve will
A)
Decrease prices
B)
Decrease the rate of unemployment
C)
Increase real output
D)
Increase both prices and the rate of unemployment

10
Which would have been a factor contributing to the demise of stagflation between 1983 to 1989
A)
A lessening of foreign competition
B)
A strengthening of the monopoly power of OPEC
C)
A recession brought on largely by a tight monetary policy
D)
An increase in the regulation of previously deregulated industries