Unemployment resulting from real wages being above their equilibrium level is called ______ unemployment.
Structural
Frictional
Disequilibrium
Natural
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 greater the marginal propensity to import
The smaller the spending multiplier
The greater the spending multiplier
The greater net exports
The greater demand
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
An individual who is not working for work is classified as
Unemployable
Unemployed
Hardcore unemployed
A discouraged worker
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.
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
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
When outflows to the unemployment pool are greater than inflows, the level of unemployment will
Rise
Fall
Remains unchanged
Rise initially and then fall
The full costs of increased unemployment entail.
Loss of tax revenue for the authorities
Financial hardship experienced by the unemployed and their families
A range of potential social and political consequences
