WorksheetsCHAPTER 5 - INFLATION & UNEMPLOYMENT
Total questions: 10
Worksheet time: 4mins
The phases of a business cycle in which unemployment is at the lowest level is a _____________.
peak
trough
recovery
recession
Due to hypermarket the existence of self-service counters, many cashiers are no longer needed and laid off. These unemployed cashiers are categorized under _____________.
cyclical unemployment
structural unemployment
frictional unemployment
seasonal unemployment
Which of the following group will gain profit during inflation?
Pensioner
Businessman
Fixed income worker
Holders of fixed deposits in a bank
An increase in the price of raw materials causes a/an ______________ inflation
cost push
profit push
import push
demand pull
Fiscal policy influences the economic activities by using
tax rates and interest rate
tax rates and government expenditure
interest rate and reserve requirement
government expenditure and reserve
Assume that the total labor force is 100 individuals with 10 are unemployment. The unemployment rate is __________. Assumed that 10 people drop out of the labor force, and that 10 remain unemployed. The new unemployment rate is ________.
10%; 11%
11%; 10%
10%; 9%
9%; 10%
Suppose that the number of jobs in the fishing industry decreases, but the number of jobs in the travel industry increases. Initially ________________
the economy remains at full employment
structural unemployment increases
cyclical unemployment increases
there is a shortage of workers in both sectors
Every country experiencing inflation is in the trap of liquidity. Government action to overcome the country's economy is ______________.
increase the bank rate
increase reserve requirement ratio
reduce money supply
adopt a surplus budget policy
If the consumer price index (CPI) for the year 2014 is equal to 180 and for the year 2015 is equal to 198, calculate the inflation rate level in year 2015.
10%
18%
80%
98%
Which of the following statements would be classified as "full employment"?
Everyone who wants to work has a job
Approximately 95% of people have a job
People who have been hunting for a job for a long time
Everyone who wants to work have full jobs
