Macroeconomic Objectives

Inflation is measured by...

• Consumer Price Index (CPI).
• Gross National Product (GNP).
• Gross Domestic Product (GDP).
• Securities & Exchange Commission (SEC).

A pair of shoes that costs $80 last month costs $100 this month. Which of the following BEST describes this economic condition?

• inflation

• recession

Which of the following best defines unemployment?

• The state of being able to work and actively seeking work, but unable to find employment.

• The state of being able to work, but choosing not to.

• The percentage of the labour force that is able and actively seeking work, but cannot find employment.

• The total number of people who do not work.

Which of the following is not a consequences of rising unemployment?

• Increased illness through psychological stress

• Upward pressure on average wage levels

• Higher rates of emigration, causing reductions in productive capacity.

• Increased crime rates.

Economic growth is best measured by an increase in __________.

• GDP

• GNP

• Real NNP

• Real GDP

What is the most likely Macroeconomic Objective Conflict between GDP Growth and Stable inflation?

• Unemployment will rise

• Environmental issues

• Prices are likely to go up with growth

• Distribution of wealth

Which of the following objectives might conflict with the objective of economic growth?

• Sustainable Environment

• Stable inflation

• High employment levels

• Distribution of Wealth

Why might Economic Growth and Income Equality have conflicting elements?

• Businesses may grow but not be able to offer increased job opportunities, especially in the technological age.

• Businesses may grow and become more profitable, however with out a progressive tax system, the wealth may not trickle down into society.

• Economic Growth may lead to inflation

• Economic growth may lead to unemployment

What is another word for saying that a sacrifice has to be made when there are two conflicting macroeconomic objectives?

• Scarcity

• Trade - off

• Opportunity cost

• Choice

Equilibrium in Balance of Payments can be achieve in country if we just import and not exporting our product.

• True

• False