Unemployment & Inflation

What does the term "business cycle" refer to?

• A continuous increase in economic activities

• A wave-like movement in economic activity

• A linear progression of national income

• A sudden fluctuation in employment

What characterizes the business cycle?

• Stable economic growth

• Unpredictable economic activities

• Linear movements in national income

• Wave-like fluctuations in economic activity

During which phase of the business cycle is the economy at full employment?

• Trough

• Recovery

• Peak or boom

• Recession

What is the definition of the unemployment rate?

• The percentage of the population unemployed

• The percentage of the labor force that is unemployed and actively seeking jobs

• The number of unemployed individuals in the economy

• The ratio of employed to unemployed individuals

What is a discouraged worker?

• A person seeking part-time employment

• An individual actively seeking jobs

• Someone who has given up seeking employment

• A full-time worker with limited capability

What is the definition of inflation?

• A decrease in the general price level of goods and services

• A continuous increase in the general price level of goods and services

• The condition of simultaneous high unemployment and rapid inflation

• A reduction in the rate of inflation

When does demand-pull inflation occur?

• When aggregate demand exceeds aggregate supply

• When production costs increase

• When aggregate demand is less than aggregate supply

• When there is a decrease in consumer spending

What is one measure to control unemployment?

• Development of new land

• Increase in tax

• Decrease in government expenditure

• Anti-hoarding campaign

What characterizes the peak phase of the business cycle?

• Minimum output and maximum unemployment rate

• Increased output and decreased unemployment rate

• Maximum output and lowest unemployment rate

• Declining output and rising unemployment rate

What is underemployment?

• Being employed in a job below one's capability

• Being unemployed and seeking jobs actively

• Being employed in a job above one's capability

• Being discouraged and giving up seeking jobs