Government policies that focus on changing interest rates are called ?

A. Fiscal policies
B. Monetary policies
C. Supply-side policies
D. Incomes policies

If VAT rates rise, then costs are likely to ___ and demand is likely to ____?

A. Rise; rise
B. Rise; fall
C. Fall; fall
D. Fall; rise

Aggregate supply is the total amount ?

A. Of products produced by a given industry.
B. Produced by the government
C. Of labour supplied by all households
D. Of goods and services produced in an economy.

Unemployment resulting from imperfect information in the labour market is called ____ unemployment?

A. Frictional
B. Natural
C. Real-wage
D. Disequilibrium

The demand for ice-cream is lower outside of summer causing lower demand for ice-cream salesman if they cannot find other work, this is called _______ unemployment?

A. Regional
B. Structural
C. Seasonal
D. Demand-deficient

As prices rise. People will want to keep more money as cash and in bank accounts This is called ?

A. Real balance effect.
B. Cash ratio.
C. Money illusion.
D. Menu costs of inflation.

Which does the government not control directly ?

A. Spending on health
B. Spending on defence
C. Firms investment decisions
D. Spending on education

Which of the following can the government not use directly to control the economy ?

A. Pay rates within the private sector
B. Pay rates in the public sector
C. Investment in education
D. Benefits available for the unemployed and sick

Which of the following is a possible government objective as opposed to a policy ?

A. Lower interest rates
B. Lower taxation rates
C. Lower government spending
D. Lower inflation

Reducing inflation is a more important objective than economic growth is an example of ?

A. Normative economics
B. Positive economics
C. Objective economics
D. Reality economics