Question 1
What is meant by political constraints?
A.
Policies may help SR but harm LR. B.
Higher output may raise emissions. C.
Benefits years ahead; SR pain possible. D.
Electoral cycle affects policy choice.
Question 2
What is meant by growth vs equity?
A.
Rapid AD growth may overheat economy. B.
Rising AD may worsen current account. C.
Electoral cycle affects policy choice. D.
Growth may widen inequality.
Question 3
What is meant by bop vs growth?
A.
Rising AD may worsen current account. B.
Classic policy dilemma. C.
Benefits years ahead; SR pain possible. D.
Coordination or duplication.
Question 4
What is meant by phillips curve trade-off?
A.
Benefits years ahead; SR pain possible. B.
Lower unemployment may mean higher inflation in SR. C.
Higher output may raise emissions. D.
Coordination or duplication.
Question 5
Supply-side policies may reduce conflict by:
A.
Banning monetary policy B.
Eliminating all trade C.
Raising capacity while limiting inflation D.
Removing all taxes
Question 6
The Phillips curve illustrates conflict between:
A.
Inflation and unemployment B.
Tax and subsidies only C.
Exports and imports only D.
PED and PES
Question 7
In the long run Classical view, AD increase at Yfe causes:
A.
Trade surplus only B.
Higher real output only C.
Lower unemployment permanently D.
Higher prices only
Question 8
Rapid demand-side growth may worsen:
A.
Inflation and the current account B.
Only supply-side capacity C.
Productivity always D.
Only LRAS
Question 9
What is meant by growth vs inflation?
A.
Rapid AD growth may overheat economy. B.
Electoral cycle affects policy choice. C.
Rising AD may worsen current account. D.
Policies may help SR but harm LR.
Question 10
What is meant by short run vs long run?
A.
Coordination or duplication. B.
Benefits years ahead; SR pain possible. C.
Growth may widen inequality. D.
Policies may help SR but harm LR.
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