Question 1
What is meant by movement along sras?
A.
Change in output due to price level along curve. B.
Wages slow to fall in downturn (Keynesian view). C.
Oil, commodities shift SRAS. D.
Sudden change in costs or availability of inputs.
Question 2
What is meant by sticky wages?
A.
Weaker currency raises import costs → SRAS left. B.
Higher productivity shifts SRAS right. C.
Wages slow to fall in downturn (Keynesian view). D.
Sudden change in costs or availability of inputs.
Question 3
Higher oil prices tend to:
A.
Reduce national debt B.
Shift AD right only C.
Shift SRAS left D.
Increase exports only
Question 4
What is meant by raw material costs?
A.
Higher productivity shifts SRAS right. B.
Weaker currency raises import costs → SRAS left. C.
Sudden change in costs or availability of inputs. D.
Oil, commodities shift SRAS.
Question 5
What is meant by exchange rate?
A.
Oil, commodities shift SRAS. B.
Short-run aggregate supply — upward sloping. C.
Higher taxes on firms raise costs → SRAS left. D.
Weaker currency raises import costs → SRAS left.
Question 6
What is meant by indirect taxes?
A.
Short-run aggregate supply — upward sloping. B.
Higher taxes on firms raise costs → SRAS left. C.
Where AD intersects SRAS. D.
Change in output due to price level along curve.
Question 7
Higher productivity shifts:
A.
PPF inward B.
BoP deficit only C.
AD left only D.
SRAS to the right
Question 8
SRAS slopes upward because:
A.
Imports are zero B.
Higher price levels encourage greater output in the short run C.
MPC equals 1 D.
AD always equals LRAS
Question 9
Cost-push inflation is caused by:
A.
AD falling only B.
Higher exports only C.
LRAS shifting right D.
SRAS shifting left
Question 10
What is meant by supply shock?
A.
Oil, commodities shift SRAS. B.
Short-run aggregate supply — upward sloping. C.
Higher productivity shifts SRAS right. D.
Sudden change in costs or availability of inputs.
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