Economics Practice MCQ Page 51

Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 4136   As the price level rises
  1. the interest rate continues to fall
  2. the interest rate increases
  3. inflationary expectations are lowered
  4. real GDP drops below its natural level
Question: 4139   Which of the following is not a valid statement about a rigid program of wage and price controls as the solution to inflation?
  1. The productive efficiently of the economy will decline
  2. The program would operate indefinitely
  3. Supply and evasion of controls
  4. Inflationary expectations will likely be unaffected
Question: 4140   If the economy is initially in long -run equilibrium where AD= SRAS,if there is a one time increase in the money supply ,which of the following does not occur in the short run?
  1. The unemployment rate decreases
  2. The price level increases
  3. The interest rate falls
  4. Supply -side inflation results
Question: 4144   Most economists believe that supply -side tax-rate reductions
  1. will not have much of an effect on inflation
  2. should increase productivity enough to substantially reduce inflation
  3. should be combined with a return to the gold standard
  4. will support the view that tax changes do not affect aggregate demand