Home→ Economics Mcqs → Aggregate Supply, Unemployment And Inflation →Which school of economic thought suggested that one possible cause of inflation was a ‘push’ from the cost side ?

The abolition of income tax would probably ___ the number of workers in employment and _______ the equilibrium rate of unemployment?
Policies to reduce unemployment by reducing union power, tax cuts, reductions in unemployment benefit and investment subsidies are examples of ?
The equilibrium rate of unemployment at any real wage, is the difference between ____ and ______?
A person who is made redundant because of the contraction of an industry is a victim of ?
The Short run Phillips curve can shift in response to changes in ?
The Phillips curve shows the trade-off between _____ and _____?
During Periods of rising inflation and rising interest rates we expect the demand for real cash to ?
The quantity theory of money says that changes in lead to equivalent changes in ____ but have no effect on ______?
Expansionary fiscal policy in the classical model will cause aggregate demand to _______ potential output?
At the intersection of AD and AS equilibrium is achieved in ?
In the classical model, potential output cannot be increased by ?
The AD schedule indicates that __ inflation is associated with ________ output?
All the following are types of monetary policy expect ?
The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?
When economists use the term real business cycle theory they are suggesting that business cycles are caused by ?
Doubts about the natural and the existences of the Phillips curve arose in the 1970s when the economy experienced ?
If input price prices adjusted very rapidly to output prices as classical economists argue the Philips curve would be ?
The Phillips curve indicates that there is a ?
Potential GDP is the level of aggregate output ?
In the long run, the Phillips curve will be vertical at the natural rate of unemployment if ?
According to the classical economists, those who are not working ?
The classical view of the labor market is basically consistent with the assumption of _________ aggregate supply curve?
Possible causes of involuntary unemployment are ?
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 ?
If somebody is prepared to work at the going wage rate but cannot find work then they are victims of ?
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 ?
An advocate of the classical model of the economy would claim that unemployment is created when the ____ is above its equilibrium level in the ______?
The costs of inflation are ?
The long-run Phillips curve is ____ at the ____?
Governments may contribute to inflationary pressure because of building up large ?
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 ?
The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?
The equilibrium inflation rate is determined by the intersection of _____ and _____?
If a person thinks they are better off after a 10% wage increase, and all prices have risen 10% then they are experiencing ?
The classical model of macroeconomics assumes ?
Even though explicit contracts may lead to layoffs during recessions explicit contracts may still be efficient because such contracts ?
An unspoken agreement between workers and firms that the firm will not cut wages is known as ?
The expectations augmented Phillips curve was the Work of which group of economists ?
The view of the Phillips curve that prevailed in the 1960s implied that policies that ?
The Phillips curve is a graph showing the relationship between ?
The measured unemployment rate can be pushed below the natural rate, but ?
The natural rate of unemployment is generally thought to be the sum of ?
Those who hold the classical view of the labor market are likely to believe that ?
one of the tenets of the classical view of the labor market is that the wage adjustments that are necessary to clear the labor market occur ?

Which school of economic thought suggested that one possible cause of inflation was a ‘push’ from the cost side ?

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

Correct Answer: Keynesian. ✔

Last Updated: June 11, 2019