If somebody is prepared to work at the going wage rate but cannot find work then they are victims of ?

A. Voluntary unemployment
B. Classical unemployment
C. Voluntary unemployment
D. Frictional unemployment

If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?

A. 30%
B. 10%
C. 70%
D. 40%

Possible causes of involuntary unemployment are ?

A. minimum wage agreements
B. trade
C. scale economies
D. insider-outsider distinctions

The classical view of the labor market is basically consistent with the assumption of _________ aggregate supply curve?

A. A vertical (or almost vertical)
B. A downward sloping
C. A horizontal (or almost horizontal)
D. An upward sloping

According to the classical economists, those who are not working ?

A. Have chosen not to work at the market wage
B. Have given up looking for a job but would accept a job at the current wage if one were offered to them.
C. Are too productive to be hired at the current wage
D. Are unable to find a job at the current wage rate

The equilibrium inflation rate is determined by the intersection of _____ and _____?

A. Demand, supply
B. Is, lm
C. Ad, as
D. Labor demand, labor supply

The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?

A. Long run, short run
B. Flexible imperfect markets
C. Short-term long run
D. Long run, imperfect markets

In the events of an increase in the international price of oil that encouraged the central bank to accept lower real interest rates, inflation would most likely ?

A. Fall
B. Increase
C. Remain the same
D. Fluctuates

Governments may contribute to inflationary pressure because of building up large ?

A. Numbers of employees
B. Welfare plans
C. Budget deficits
D. Expenditures

The long-run Phillips curve is ____ at the ____?

A. Horizontal, natural rate of inflation
B. Horizontal natural rate of unemployment
C. Vertical natural rate of inflation
D. Vertical equilibrium rate of unemployment