CLASSICAL ECONOMIC MODEL set 4

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Malasia

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Froggy Jumps CLASSICAL ECONOMIC MODEL set 4Versión en línea ECONOMICS por Norain 1 Which of the following are main characteristics of Classical economic model? I.Focuses on real factors. II.Stresses on tendencies towards automatic adjustment. III.Assumes asymmetric information. IV.Emphasizes market equilibrium. a I, II b I, III c II, IV 2 According to Classical economic model, employment is determined by a labour nominal wage rate. b supply and demand for labour. c numbers of labour hired by firms. 3 In Classical labour market, an increase in price level causes a demand for labour to increase. b supply of labour to increase. c real wage to increase. 4 Classical AS curve shifts to the right is caused by the following factors except a an increase in new economic resources. b an increase in price of inputs. c an increase in labour productivity. 5 The quantity theory of money is based on the equation of exchange, MV = Py where V and y are constant. Assume that individuals want to hold money ¼ of nominal income (Py) where the nominal income is RM2000. Determine velocity of money (V). a 1/4 b 4 c 1 6 The quantity theory of money is based on the equation of exchange, MV = Py where V and y are constant. Assume that individuals want to hold money ¼ of nominal income (Py) where the nominal income is RM2000. How much is money supply (M). a 500 b 2000 c 8000

Froggy Jumps

CLASSICAL ECONOMIC MODEL set 4Versión en línea

ECONOMICS

por Norain

Which of the following are main characteristics of Classical economic model? I.Focuses on real factors. II.Stresses on tendencies towards automatic adjustment. III.Assumes asymmetric information. IV.Emphasizes market equilibrium.

I, II

I, III

II, IV

According to Classical economic model, employment is determined by

labour nominal wage rate.

supply and demand for labour.

numbers of labour hired by firms.

In Classical labour market, an increase in price level causes

demand for labour to increase.

supply of labour to increase.

real wage to increase.

Classical AS curve shifts to the right is caused by the following factors except

an increase in new economic resources.

an increase in price of inputs.

an increase in labour productivity.

The quantity theory of money is based on the equation of exchange, MV = Py where V and y are constant. Assume that individuals want to hold money ¼ of nominal income (Py) where the nominal income is RM2000. Determine velocity of money (V).

1/4

The quantity theory of money is based on the equation of exchange, MV = Py where V and y are constant. Assume that individuals want to hold money ¼ of nominal income (Py) where the nominal income is RM2000. How much is money supply (M).

500

2000

8000

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CLASSICAL ECONOMIC MODEL set 4Versión en línea

por Norain

Which of the following are main characteristics of Classical economic model? I.Focuses on real factors. II.Stresses on tendencies towards automatic adjustment. III.Assumes asymmetric information. IV.Emphasizes market equilibrium.

According to Classical economic model, employment is determined by

In Classical labour market, an increase in price level causes

Classical AS curve shifts to the right is caused by the following factors except

The quantity theory of money is based on the equation of exchange, MV = Py where V and y are constant. Assume that individuals want to hold money ¼ of nominal income (Py) where the nominal income is RM2000. Determine velocity of money (V).

The quantity theory of money is based on the equation of exchange, MV = Py where V and y are constant. Assume that individuals want to hold money ¼ of nominal income (Py) where the nominal income is RM2000. How much is money supply (M).

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