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Illustrate multiple choice problems about quantity theory, fiscal imbalance, Fiscal policy, economic growth

1. According to the quantity theory, in the long run, an increase in the growth rate of ________ leads to an increase in the ________.

a) real GDP; inflation rate

b) the quantity of money; growth rate of real GDP

c) the quantity of money; inflation rate

d) real GDP; growth rate of velocity

2. Comparing the fiscal imbalance for the current generation versus future generations, it is the case that:

a) future generations pay a larger share of the fiscal imbalance.

b) the current generation pays a larger share of the fiscal imbalance.

c) each generation pays half of the fiscal imbalance.

d) each generation pays all of its fiscal imbalance.

3. The forces that generate economic growth are those that shift the:

a) long-run aggregate supply curve leftward.

b) long-run aggregate supply curve rightward.

c) aggregate demand curve leftward.

d) none of the above answers are correct.

4. Fiscal policy includes:

a) only decisions related to government expenditure on goods and services.

b) only decisions related to government expenditure on goods and services and the value of transfer payments.

c) only decisions related to the value of transfer payments and tax revenue.

d) decisions related to government expenditure on goods and services, the value of transfer payments, and tax revenue

5. A Phillips curve shows the relationship among the:

a) price level and real GDP.

b) unemployment rate and real GDP.

c) inflation rate and the unemployment rate.

d) inflation rate and real GDP.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M919478

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