Role of government

Monetary policy is laid down by

• the government
• the central bank
• the state
• local governments

If interest rates are set higher

• inflation will probably decrease
• inflation increases
• more credit is available
• prices will increase

People are more willing to save if interest rates are...

• low
• stable
• high
• under 2 percent

Economic growth is measured by the

• GDP
• inflation
• unemployment rate
• interest rates

Voluntary unemployment means that

• people are not willing to work because the salaries are too low.
• people are not willing to work because they are rich.
• people can't find job
• people get unemployment assistance.

Frictional unemployment occurs when

• people are not trained to use new inventions.
• employers look for people with different educational background.
• there is a recession in the country and many people are laid off.
• change jobs or move to another city.

In the labour market model we use the following factors to determine the equilibrium:

• nominal wages and number of people
• real wages and number of people
• real wages and quantity
• price and number of people

In the long term financial market you can trade with

• shares and bonds
• cash
• checks
• financial instruments within a year

One of the government's tasks is

• to set the interest rates
• to maintain public institutions
• to ensure sustainable development
• to keep taxes low so that foreign firms invest in Hungary

Some of the tools of the government to protect the economy are

• customs and restrictions
• interest rates and inflation
• unemployment and customs
• favorable taxes and low interest rates