What happens to inflation if the demand for goods and services increases?
Decreases
Increases
The other answers are correct
What causes moderate inflation?
Fluctuations in real demand for goods and services, or changes in available supplies
The other answers are correct
Growth in the money supply
Which theory indicates that the total amount of spending in an economy is fundamentally determined by the total amount of money in existence?
The Ricardian Theory
The Keynesian Theory
The Theory of the Quantity of Money
What does Robert J. Gordon call the Keynesian's three main types of inflation?
Negative trio
Critical triad
Model triangle
What produces excess demand?
Expansion
Recession
Balance
What inflation can be caused by the increased prices of inputs?
The cost inflation
The demand inflation
The supply inflation
What kind of inflation is induced by adaptative expectations?
The cost
The self-built
The demand
How do companies pass the higher labor costs on to their customers?
With lower prices
With the same prices
With higher prices
What is the percent change in a price index over time?
Inflation
Devaluation
None of the other answers is correct
What type of unemployment is frictional?
Involuntary
Voluntary
The other answers are correct
How is the level of involuntary unemployment calculated?
It's the unemployment rate plus the classical unemployment rate
It's the unemployment rate minus the frictional unemployment rate
It's the unemployment rate minus the classical unemployment rate
What type of unemployment occurs when real wages for a job are set above the agreed minimum level?
Cyclic
Keynesian
Classic
What do the laws that restrict firing produce?
They make it less likely for businesses to hire
They make it more likely for businesses to hire
The other answers are correct
What is cyclical unemployment also called?
Real salary
Keynesian
Classic
What type of unemployment is caused by a recession in the business cycle?
The seasonal
The Keynesian
The classic
What causes the microchip revolution and the explosion in computer science and the robotization of work?
Make Keynesian unemployment permanent
Make Classic unemployment permanent
Make structural unemployment permanent
What type of unemployment is cyclical unemployment?
Involuntary
Voluntary
The other answers are correct
Who are part of the workforce?
The employees
The other answers are correct
The unemployees
How important is international trade to a World Power?
The other answers are correct
It isn't a very important source of econommic income
It's a very important source of economic income
What happens if Morocco produces a toy with cost of €2 and a Spanish company needs to incur cost of €5 for the same toy?
That the Moroccan company has an absolute advantage over the Spanish company
That the Spanish company has an absolute advantage over the Moroccan company
The other answers are correct
Which theory refers to the ability of a person or a country to produce a particular good at a lower relative cost that another person or country?
The one with absolute advantage
The one with comparative advantage
The one with total advantage
We are going to suppose two countries (Spain and Morocco) and two products (bycicle and computer). Morocco produces both products with less cost, but the difference (relative cost) won't be the same, that is, Morocco has an advantage in both but it's likety that the cost difference in the bycicle is greater since it's less mechanized. So Spanish companies should stop producing bikes and focus on the production of computers and, on the contrary, Moroccan companies should direct their resources to the production of bikes. What type of advantage is this an example of?