[{"id":214905,"question":"The multiplier accelerator model assumes _______ depends on.","choices":[{"text":"Consumption, expected future profits.","value":"A"},{"text":"Investment, interest rates.","value":"B"},{"text":"Investment expected future profits.","value":"C"},{"text":"Stock building, interest rates.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214904,"question":"The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the.","choices":[{"text":"Sun spect theory","value":"A"},{"text":"Multiplier accelerator model","value":"B"},{"text":"Solow theory","value":"C"},{"text":"New classical theory","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214903,"question":"All of the following are parts of the business cycle except.","choices":[{"text":"Boom","value":"A"},{"text":"slump","value":"B"},{"text":"Recovery","value":"C"},{"text":"Acceleration","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214902,"question":"The business cycle describes fluctuations in output around the.","choices":[{"text":"Trend path of output","value":"A"},{"text":"Boom","value":"B"},{"text":"Recession","value":"C"},{"text":"Short run fluctuations in output","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214901,"question":"The growth rate of economics tend to converge because._________ is easier when capital per worker is low and because of_____","choices":[{"text":"capital widening, technical innovation","value":"A"},{"text":"Capital widening, catch up in technology","value":"B"},{"text":"Capital deepening, technical innovation","value":"C"},{"text":"Capital deepening, catch up technology.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214900,"question":"Economic growth may depend upon __________ and_________","choices":[{"text":"<div>Population size , x -efficiency</div>","value":"A"},{"text":"Population age distribution, education","value":"B"},{"text":"Population growth, education","value":"C"},{"text":"Population growth, technical progress","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214899,"question":"In the neoclassical theory of growth a higher saving rate leads to.","choices":[{"text":"A higher growth rate","value":"A"},{"text":"A fluctuating growth rate","value":"B"},{"text":"A lower growth rate","value":"C"},{"text":"No change in the growth rate","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214898,"question":"The neoclassical theory of growth identities the steady state rate of growth as the _________ just sufficient to keep _______ constant while labour grows.","choices":[{"text":"Saving investment","value":"A"},{"text":"Capital per person productivity","value":"B"},{"text":"Labour growth , output","value":"C"},{"text":"Investment capital per person","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214897,"question":"Potential output can be increased by _________ or by_________","choices":[{"text":"Increasing the use of labour, increasing the use of land","value":"A"},{"text":"Increasing the use of capital, increasing the use of labour","value":"B"},{"text":"Increasing the use of land, increasing the use of capital","value":"C"},{"text":"Increasing the use of all inputs technical advances","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214896,"question":"GDP per head may be an imperfect measure of economic welfare because it excludes.","choices":[{"text":"The value of leisure","value":"A"},{"text":"Externalities","value":"B"},{"text":"Untraded goods","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214895,"question":"In the EMU a country's competitiveness can change because of.","choices":[{"text":"Interest rate adjustment","value":"A"},{"text":"Central bank intervention i the forex","value":"B"},{"text":"Domestic wage and price adjustment","value":"C"},{"text":"Devaluations","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214894,"question":"the Maastricht criteria for entry to the EMU are that applicants should have","choices":[{"text":"Low inflation","value":"A"},{"text":"Low interest rates","value":"B"},{"text":"Stable nominal exchange rate","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214893,"question":"All of the following are benefits of the single market except.","choices":[{"text":"It allows countries to exploit their comparative advantage, more fully","value":"A"},{"text":"Firms could more readily exploit economies of scale","value":"B"},{"text":"It intensified competition","value":"C"},{"text":"It is easier book holidays in member countries.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214892,"question":"The single European Act committed_ governments to a ___ in 1992","choices":[{"text":"European union, single market","value":"A"},{"text":"Western European, single currency area","value":"B"},{"text":"European union, single currency area","value":"C"},{"text":"Western European, single market","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214891,"question":"In the ERM, each country fixed ___ against each other ERM participant collectively the group._____ against the rest of the world.","choices":[{"text":"A nominal exchange rate, floated","value":"A"},{"text":"A real exchange rate, pegged","value":"B"},{"text":"a purchasing power parity, pegged","value":"C"},{"text":"a real exchange rate, floated","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214890,"question":"Fiscal policy is weak under floating exchange rates as fiscal expansion.","choices":[{"text":"Crowds out imports","value":"A"},{"text":"Crowds out public consumption","value":"B"},{"text":"Crowds out exports","value":"C"},{"text":"Reduces the budget deficit","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214889,"question":"Floating exchange rates are __ in the short run","choices":[{"text":"Stable","value":"A"},{"text":"Volatile","value":"B"},{"text":"Predictable","value":"C"},{"text":"Depreciating","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214888,"question":"If one country, with floating exchange states, has higher inflation than its competitors, we would expect its exchange rate to.","choices":[{"text":"Appreciate","value":"A"},{"text":"Depreciate","value":"B"},{"text":"Revalue","value":"C"},{"text":"be in short supply","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214887,"question":"In the short run the level of floating exchange rates is determined mainly by.","choices":[{"text":"Interest rates","value":"A"},{"text":"Competitiveness","value":"B"},{"text":"Trade","value":"C"},{"text":"Speculation","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214886,"question":"Under floating exchange rates, expectations of higher interest rates are likely to cause an __________ of the exchange rate.","choices":[{"text":"Depreciation","value":"A"},{"text":"Appreciation","value":"B"},{"text":"fall","value":"C"},{"text":"Devaluation","value":"D"},{"value":"E"}],"correctAnswer":2}]