According to the classical economists, those who are not working ? A. have chosen not to work at the market wage B. have given up looking for a job but would accept a job at the current wage if one…

The classical view of the labor market is basically consistent with the assumption of _________ aggregate supply curve? A. a vertical (or almost vertical) B. a downward slog C. a horizontal (or almost horizontal) D. an upward slog

Possible causes of involuntary unemployment are ? A. minimum wage agreements B. trade C. scale economies D. insider-outsider distinctions E. efficiency wagesF. all of the above

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 ? A. 30% B. 10% C. 70%D. 40%

If somebody is prepared to work at the going wage rate but cannot find work then they are victims of ? A. voluntary unemployment B. classical unemploymentC. voluntary unemployment D. Frictional unemployment

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 ? A. SmallerB. Larger C. the same size D. None of these

An advocate of the classical model of the economy would claim that unemployment is created when the ____ is above its equilibrium level in the ______? A. price level, aggregate economy B. tax rate, government budgetC. wage rate, labor market…

The costs of inflation are ? A. shoe leather costs B. menu costs C. income redistribution D. uncertainlyE. all of the above

The long-run Phillips curve is ____ at the ____? A. horizontal, natural rate of inflation B. horizontal natural rate of unemployment C. vertical natural rate of inflationD. vertical equilibrium rate of unemployment

Governments may contribute to inflationary pressure because of building up large ? A. numbers of employees B. welfare plansC. budget deficits D. expenditures