Q:1-Which of the following is the best example of frictional unemployment?
Mark one answer:
A retail employee who was hired by a shopkeeper during the holiday season is let go once the holiday season is over.
An assembly line worker at a factory loses his job because the plant that he works at purchases a new machine to replace him.
A recent college graduate quits her job at a local coffee shop upon graduation. She is planning on applying for a salaried position with local banks in the area.
A major corporation announces that it is laying off 250 employees due to an economic recession which has caused weakening demand for their products.

Q:6-Which of the following are considered open-market activities?
Mark one answer:
Raising Bank Reserve Requirements
Decreasing Taxes
Increasing Government Spending
Selling Government Bonds

Q:7-According to Keynesian Economics, which of the following would weaken the multiplier effect?
Mark one answer:
An increase in government spending
Selling government bonds
High velocity of money
An increase in interest rates

Q:8-Which of the following is the best definition of the concept behind the Phillips Curve?
Mark one answer:
The relationship between government spending and the multiplier effect
The relationship between unemployment and inflation
The relationship between net exports and GDP
The relationship between worker pay and productivity.

Q:9-Which of the following is not one of the three main causes of inflation?
Mark one answer:
Built-in inflation
Hyperinflation
Cost push inflation
Demand pull inflation

Q:10-The long-run aggregate supply curve is likely to shift to the right when which of the following occurs?
Mark one answer:
An increase in worker productivity due to technological innovation
A higher than estimated multipler effect
An increase in government spending due to government stimulus
A decrease in interest rates due to action by the Federal Reserve