Economics MCQs

A. Supply-side economics
B. None of these answers
C. The crowding-out effect
D. The multiplier effects

A. the wealth effect
B. none of these answers
C. the exchange-rate effect
D. the fiscal effect

A. Many economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy
B. None of these answers are true
C. Long lags enhance the ability of policy makers to fine tune the economy
D. When policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect

A. None of these answers
B. Decrease the quantity demanded of money
C. Increase the quantity demanded of money
D. Decreases the demand for money

A. Increase government spending and decrease taxes
B. Decrease the money supply
C. Decrease government spending and increase taxes
D. Decrease interest rates

A. 4
B. 7.5
C. 5
D. 0.75

A. Decrease government spending which the shifts the aggregate demand curve to the left
B. Decrease taxes, which shifts the aggregate demand curve to the right
C. Decrease taxes, which shifts the aggregate demand curve to the left
D. Decrease government spending which shifts the aggregate demand curve to the right

A. Most economists believe that in the short run the greatest impact of a change in taxes is on aggregate supply, not aggregate demand
B. An increase in taxes shifts the aggregate demand curve to the right
C. A decrease in taxes shifts the aggregate supply curve to the left
D. A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes.

A. The multiplier effects
B. Supply side economics
C. None of these answers
D. The crowding out effect

A. Shifts money demand to the right and increases the interest rate
B. None of these answers
C. Shifts money demand to the right and decreases the interest rate
D. Shifts money demand to the left and increases the interest rate