BUS103 MCQs
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Trial MCQs for Final Exam
SECTION A
1. Which of the following statement is not true? Other things remaining the same,
(a) A fall in the price level increases both exports and imports.
(b) A rise in the price level decreases the real value of money.
(c) A fall in the price level increases the quantity of real wealth.
(d) A rise in the price level increases saving.
2. Which of the following statement is true? Other things remaining the same,
(a) A fall in the price level increases both exports and imports.
(b) A rise in the price level increases the real value of money.
(c) A fall in the price level increases the quantity of real wealth.
(d) A rise in the price level decreases saving.
3. Find an incorrect statement.
(a) The short run aggregate supply (SAS) curve slopes upward.
(b) With an inflationary gap, money wage rate begins to fall and the SAS curve shifts rightward.
(c) A leftward shift in the short run aggregate supply (SAS) curve causes stagflation.
(d) In the long run, the quantity of real GDP is equal to potential GDP.
4. Find an incorrect statement.
(a) The short run aggregate supply (SAS) curve slopes upward.
(b) With an inflationary gap, money wage rate begins to rise and the SAS curve shifts leftward.
(c) A leftward shift in the short run aggregate supply (SAS) curve causes stagflation.
(d) In the long run, the quantity of real GDP is greater than potential GDP.
5. With the given money wage rate, as the price level falls below the equilibrium price level, the quantity of real GDP supplied _______ and the real GDP is _______ than the potential GDP. The missing words are:
(a) increases; smaller
(b) decreases; greater
(c) increases; greater
(d) decreases; smaller
6. With the given money wage rate, as the price