If the economy is operating at its full capacity or potential GDP following a decline in business confidence.
Investment is likely to fall and unemployment is likely to increase
Investment and employment are likely to remain unchanged
Firms are likely to increase then investment in new plant and machinery.
All the above
Which of the following is true about a period of inflation?
Prices of all goods stay the same or are rising
All prices are rising
The average price level is rising
All of the above
The labour force can be defined as
Those who could claim benefit if they were to become unemployed.
The population between school leaving age and retirement age
Anyone who is working or actively seeking work
Those of working age who are seeking work and are available to for work at current wage rate.
According to the original phillips curve as unemployment falls
Inflation decrease
Inflation remains unchanged
Inflation increases
Outfalls
Macro economics is concerned with
The study of the behaviour of individual households and firms
The determination of the relative prices of particular goods and services
The knowledge and skills of workers in an economy
The study of the behaviour and performance of the economy as a while
Unemployment resulting from imperfect information in the labour market is called
Frictional
Natural
Structural
Regional
As inflation increases and becomes more volatile resulting in greater uncertainty.
The price system becomes less efficient as a coordinating mechanisms
Investment by firms is likely to increase
International competitiveness is likely to improve
Consumption by households is likely to increase.
The main objectives of macro economic policy are
A high and stable level of employment
A low and stable rate of inflation
A stable and satisfactory rate of economic growth
The natural rate of unemployment can be reduced by
Increasing aggregate demand via expansionary fiscal and monetary policies.
Increasing various supply side initiatives designed to improve the structure and functioning of the labour market.
Introducing various supply side indicatives designed to improve the structure and functioning of the labors market.
Aggregate demand is the total demand for all goods and services in an economy from.
The household and government sectors
The household sector
All sectors of the economy including the rest of the world
All sectors except the rest of the world
