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 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
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
All of the above
An increase in the average level of prices of goods and services is.
Deflation
Recession
Depression
inflation
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.
Structural unemployment arises
When people find themselves temporarily between jobs in the labour market.
Due to a deficiency of aggregate demand
When inflation is accelerating
When labour released from declining industries does not have the skills required to fill or is not living in the location where there exciting job vacancies.
According to the original phillips curve as unemployment falls
Inflation decrease
Inflation remains unchanged
Inflation increases
Outfalls
The percentage of the labour force that is unemployed is the
Labour force rate
Unemployment rate
Employment rate
Unemployment population ratio
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
