Economics Answers

In the AD-AS model, an expansionary fiscal policy may lead to a...

a. rightward shift of aggregate demand and demand-pull inflation..

d. leftward shift of aggregate supply and cost push inflation.

b. leftward shift of aggregate demand and demand-pull inflation.

O c. rightward shift of aggregate supply and cost-push inflation.

The vertical distance between the average total cost curve and the average variable cost curve

What divides the area of inequality and varies from 0 to 1.

D =200-25P. , S =-16+11P. Where D is demand in thousands and P is price in cedis. Assuming demand increases as result of an increase in disposable income consumers while supply remains the same.

b. What will be the effect on equilibrium quantity and equilibrium price

QD=100 000-5p

QD=-25000+20p

What is the price

What is the quantity demanded

What is the quantity supplies

Demand-pull inflation can be combated by …

a. 

raising interest rates.

a. raising interest rates.

b. 

lowering interest rates.

b. lowering interest rates.

c. 

increasing government spending.

c. increasing government spending.

d. 

decreasing personal income tax.

The appropriate policy measure to combat inflation would be to …

a. 

increase aggregate spending.

a. increase aggregate spending.

b. 

decrease taxes.

b. decrease taxes.

c. 

decrease productivity.

c. decrease productivity.

d. 

increase the repo rate.

Which one of the following statements is correct?

a. 

Cost-push inflation is triggered by an increase in consumption spending.

a. Cost-push inflation is triggered by an increase in consumption spending.

b. 

Demand-pull inflation creates a situation known as stagflation.

b. Demand-pull inflation creates a situation known as stagflation.

c. 

Cost-push inflation is described as “too much money chasing too few goods”.

c. Cost-push inflation is described as “too much money chasing too few goods”.

d. 

An earthquake can trigger cost-push inflation.

In the case of demand-pull inflation, an increase in the general price level is accompanied by … in total production. In the case of cost-push inflation, an increase in the general price level is accompanied by…in total production.

a. 

an increase; an increase

a. an increase; an increase

b. 

a decrease; a decrease

b. a decrease; a decrease

c. 

an increase; a decrease

c. an increase; a decrease

d. 

a decrease; an increase

Inflation can be caused by a/an ...... Within the AD-AS model, this will be illustrated by a ......

a. 

fall in crude oil price; rightward shift of the AS curve

a. fall in crude oil price; rightward shift of the AS curve

b. 

rise in consumption spending; leftward shift of the AD curve

b. rise in consumption spending; leftward shift of the AD curve

c. 

decrease in exports earnings; leftward shift of the AD curve

c. decrease in exports earnings; leftward shift of the AD curve

d. 

high wage demands by trade unions; leftward shift of the AS curve