Grade 9 Economics Quiz before labor day

What is the main cause of demand-pull inflation?

• Decrease in money supply

• Increase in production costs

• Excessive consumer spending

• Government tax cuts

Which type of unemployment occurs when workers are between jobs?

• Cyclical

• Structural

• Frictional

• Seasonal

What happens to purchasing power during inflation?

• Increases

• Decreases

• Stays the same

• Fluctuates randomly

Demand-pull inflation happens when:

• Business costs rise

• Exports decrease

• Interest rates increase

• Aggregate demand exceeds supply

Which of these is an example of structural unemployment?

• A teacher unemployed during summer

• A cashier replaced by self-checkout machines

• A construction worker laid off in winter

• A recent graduate looking for first job

Cyclical unemployment occurs due to:

• Technological advancements

• A recession reducing demand for labor

• Workers between jobs

• Seasonal job losses

Net exports (X-M) are negative when:

• Imports > exports

• Exports > imports

• AD increases

• Inflation falls

When interest rates rise, what typically happens to borrowing?

• Increases

• Decreases

• Remains unchanged

• Only affects businesses

What are menu costs?

• Restaurant food expenses

• Costs of changing prices due to inflation

• Government food subsidies

• Employee meal benefits

Which component is NOT included in Aggregate Demand?

• Consumption

• Investment

• Government transfers

• Net exports