The costs of inflation are ?

A. shoe leather costs
B. menu costs
C. income redistribution
D. uncertainly

An advocate of the classical model of the economy would claim that unemployment is created when the ____ is above its equilibrium level in the ______?

A. Price level, aggregate economy
B. Tax rate, government budget
C. Wage rate, labor market
D. Interest rate, market for loanable funds

We would normally expect the size of the labor force to be _____ than the number or workers willing to accepts job offers at any real wage rate ?

A. Smaller
B. Larger
C. The same size
D. None of these

The view of the Phillips curve that prevailed in the 1960s implied that policies that ?

A. Lower unemployment rate will tend to lower the inflation rate
B. Lower unemployment rate will tend to raise the inflation rate
C. Raise inflation rate will tend to raise the unemployment rate
D. Lower inflation rate will tend to raise the unemployment rate

The expectations augmented Phillips curve was the Work of which group of economists ?

A. New classical economists
B. Keynesian.
C. Monetarists
D. Marxists.

An unspoken agreement between workers and firms that the firm will not cut wages is known as ?

A. An implicit or social contract
B. A relative-wage contract
C. Employment at will
D. An explicit contract

Even though explicit contracts may lead to layoffs during recessions explicit contracts may still be efficient because such contracts ?

A. Minimize negotiation costs
B. Minimize unemployment effects
C. Guarantee that only the least productive workers will be laid off.
D. Will equitable spread the layoffs among junior and senior workers

The classical model of macroeconomics assumes ?

A. wages and prices are sticky
B. wages and prices are flexible
C. the economy may operate below full capacity
D. the economy is always at full capacity

If a person thinks they are better off after a 10% wage increase, and all prices have risen 10% then they are experiencing ?

A. Inflation
B. A supply shock
C. Crowding out
D. Inflation illusion

Pakistan is the __________ largest rice Producer country in the world?

A. Fifth
B. Sixth
C. Fourth
D. Eight