[{"id":213964,"question":"During period of inflation","choices":[{"text":"Those people who have fixed incomes benefit","value":"A"},{"text":"Every one's real income falls","value":"B"},{"text":"those people who enter long term wage agreements benefit","value":"C"},{"text":"Those people whose real income rises faster than the general price level benefit","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213963,"question":"Which of the following persons would be considered unemployed.","choices":[{"text":"a house wife","value":"A"},{"text":"A person who worked more than 20 hours in a family owned business","value":"B"},{"text":"A 15 years old looking for summer employment","value":"C"},{"text":"A recent college graduate looking for her fist job","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213962,"question":"When considering any kind of economics indicator, prices are important because.","choices":[{"text":"They reflect the value of goods and services.","value":"A"},{"text":"They are established by the government to control population 's needs","value":"B"},{"text":"They categorize goods and services by their weight","value":"C"},{"text":"Historically they have proved to the good predictors of futures unemployment.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213961,"question":"A business cycle refers to.","choices":[{"text":"Fluctuations in the general price level","value":"A"},{"text":"changes in the long term growth pattern of the CPI","value":"B"},{"text":"The ups and downs of real GDP","value":"C"},{"text":"Fluctuations in the level of corporate.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213960,"question":"Increasing the government budget deficit.","choices":[{"text":"Increases output in the long run","value":"A"},{"text":"Decreases output in the short run","value":"B"},{"text":"Decreases output in the long run.","value":"C"},{"text":"Decreases the interest rate in the medium run.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213959,"question":"The ratio of debt to GDP will be larger","choices":[{"text":"The lower the real interest rate","value":"A"},{"text":"The lower the growth rate of output","value":"B"},{"text":"The lower the in initial debt ratio","value":"C"},{"text":"The lower the ratio of the primary deficit to GDP","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213958,"question":"The relation between M2 and inflation is tighter than the relation between M1 and inflation because.","choices":[{"text":"M1 is larger than M2","value":"A"},{"text":"The demand for M2 is more stable","value":"B"},{"text":"M1 includes more liquid assets the M2","value":"C"},{"text":"None of the above answers is correct.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213957,"question":"Those who favor setting the target rate of inflation at about 3% believe.","choices":[{"text":"The cost of moderate inflation can be minimized by indexing the tax system and bonds","value":"A"},{"text":"that the cost of going to 0% is very low","value":"B"},{"text":"That moderate inflation increases money illusion","value":"C"},{"text":"Believe that moderate inflation aggravates the time inconsistency problem","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213956,"question":"Monetary policy can affect output.","choices":[{"text":"this statement is always true","value":"A"},{"text":"This statements always false","value":"B"},{"text":"This statement is true only in the short run","value":"C"},{"text":"This statement is true only in the medium run and the long run","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213955,"question":"Net taxes are.","choices":[{"text":"Government expenditures minus government revenues.","value":"A"},{"text":"Taxes paid by firms and households to the government minus the transfer payments made to firms and household.","value":"B"},{"text":"Taxes paid by firms and household to the government plus transfer payments made to firms and hose holds.","value":"C"},{"text":"Taxes paid by firms and hose hold to the government minus the cost of collecting the taxes.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213954,"question":"A Political problem with discretionary fiscal policy is the.","choices":[{"text":"Contractionary bias","value":"A"},{"text":"Big state bias","value":"B"},{"text":"Expansionary bias","value":"C"},{"text":"Over reaction bias","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213953,"question":"Which of the following would qualify as an aggregate demand shocks.","choices":[{"text":"An unexpected increase in oil prices","value":"A"},{"text":"A seasonally expected increase in oil prices","value":"B"},{"text":"An unexpected reduction in consumer confidence","value":"C"},{"text":"an anticipated tax cut","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213952,"question":"Which of the following would qualify as an aggregate supply shock.","choices":[{"text":"An unexpected increase in oil prices","value":"A"},{"text":"Seasonally expected increase in oil prices","value":"B"},{"text":"An unexpected reduction in consumer confidence","value":"C"},{"text":"an anticipated tax cut","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213951,"question":"Short run contractionary Fiscal policy would result in.","choices":[{"text":"Aggregate demand moving to the right","value":"A"},{"text":"Aggregate supply moving to the right","value":"B"},{"text":"Aggregate demand moving to the left","value":"C"},{"text":"Aggregate supply moving to the left","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213950,"question":"An example of nondiscretionary fiscal policy would be.","choices":[{"text":"The operation of the welfare state","value":"A"},{"text":"A Federal jobs program adopted to stimulate consumption","value":"B"},{"text":"A tax cut adopted to stimulate consumption","value":"C"},{"text":"An interest rate cut implemented to stimulate consumption","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213949,"question":"An example of discretionary fiscal policy would be.","choices":[{"text":"The operation of the welfare sate","value":"A"},{"text":"The operation of the processive federal income tax","value":"B"},{"text":"A tax cut adopted to stimulate consumption","value":"C"},{"text":"An interest rate out in plummeted to stimulate consumption","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213948,"question":"Fiscal policy is purposeful movements in _____designed to direct an economy","choices":[{"text":"Interest rate","value":"A"},{"text":"Legal structures","value":"B"},{"text":"Government regulations","value":"C"},{"text":"D Government spending and taxes","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213947,"question":"The purpose of fiscal policy is to","choices":[{"text":"Alter the direction of the economy","value":"A"},{"text":"Change people's attitudes toward governemnt","value":"B"},{"text":"Educate people as to the importance of economics","value":"C"},{"text":"Offer insight into the way thing work","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213946,"question":"By controlling the monetary base economists mean","choices":[{"text":"Controlling the money multiplier","value":"A"},{"text":"Restricting the amount of cash in circulation","value":"B"},{"text":"Not allowing commercial banks to issue notes and coins","value":"C"},{"text":"making banks keep a certain % of their assets as M0","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213945,"question":"If the Bank of Pakistan wished to pursue an expansionary monetary policy it would.","choices":[{"text":"Increase the minimum reserve asset ratio","value":"A"},{"text":"Sell government securities on the open market","value":"B"},{"text":"Buy government securities on the open market","value":"C"},{"text":"Raise interest rates.","value":"D"},{"value":"E"}],"correctAnswer":3}]