Macroeconomics

‭7. What is inflation?‬

‭A.‬ ‭A situation where the economy operates below its potential.‬ ‭B.‬ ‭A decrease in the overall price level in the economy.‬ ‭C.‬ ‭An increase in the overall price level in the economy.‬ ‭D.‬ ‭A situation where the economy is at full employment.‬ ‭8.‬

‭Which type of inflation is illustrated in the fgure above?‬

‭A.‬ ‭Stagflation‬ ‭B.‬ ‭Cost-push inflation‬ ‭C.‬ ‭Demand-pull inflation‬ ‭D.‬ ‭Deflation‬ ‭9.‬‭A‬‭professional‬‭pianist‬‭who‬‭loses‬‭movement‬‭in‬‭his‬‭right‬‭hand‬‭may‬‭have‬‭a‬‭hard‬‭time‬‭fnding‬‭work‬ ‭because he has no marketable skills. This is an example of which of the following?‬

‭A.‬ ‭Cyclical unemployment‬ ‭B.‬ ‭Structural unemployment‬ ‭C.‬ ‭Seasonal unemployment‬ ‭D.‬ ‭Frictional unemployment‬ ‭10. The natural rate of unemployment:‬

‭A.‬ ‭is around 0.5%.‬ ‭B.‬ ‭includes structural, cyclical, and frictional unemployment.‬ ‭C.‬ ‭includes cyclical unemployment.‬ ‭D.‬ ‭includes structural and frictional unemployment.‬

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