A) Wages and prices are continuously falling
B) Wages and prices are “Sticky” downwards
C) Real GDP cannot be increased or decreased
D) Unemployment is relatively low
PPSC Senior Subject Specialist Economics 2013 Past Paper
The simple Keynesian aggregate supply curve Is:
A) Upward-sloping as real GDP Increases
B) Horizontal at GDP levels below full Employment
C) Based on the concept that all unemployment is voluntary
D) Downward-sloping as real GDP increases.
In the aggregate supply curve is horizontal it means that
A) Firms cannot increase output
B) Firm are unwilling to increase output
C) Firms will increase output only if prices rise
D) Firms will increase output at the current price
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Hyper-inflation have one cause
A) Excess demand for wage increases by workers
B) Defence spending
C) Excess monetary growth
D) Wage and price control
Supply-side economists believe reductions in tax rates can
A) Decrease output and lower prices
B) increase output and lower prices
C) Decrease aggregate supply
D) Shift aggregate supply to the left
The “Invisible hand” refers to
A) Unseen Govt Control of the Economy
B) Intangible goods produced in the Economy
C) The unseen coordination of market economics by the prices-system
D) None of these