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Multiple Choice Questions (Choose the most correct option) 1

Economics

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Multiple Choice Questions (Choose the most correct option) 1. How is unemployment defined? A. The number of persons between the ages of 15 and 65 who worked less than 8 hours in the previous week B. The number of persons over the age of 15 who worked less than 8 hours in the previous week C. The number of persons over the age of 15 who worked at least 1 hour in the previous weck D. The number of persons between the age of 15 and 65 who worked more than 1 hour in the previous weck. E. The number of persons 15 years of age and older who are not in gainful employment but who are actively seeking employment 2. What is the natural rate of unemployment? A. The unemployment rate experienced at the depth of a depression. B. The full-employment unemployment rate C. The unemployment caused by frictional unemployment only. D. The unemployment caused by structural unemployment only E. The amount of cyclical unemployment in an economy when frictional and structural unemployment are both zero. 3. How can the rate of inflation be calculated? A. By subtracting the real income from the nominal income B. By subtracting last year's price index from this year's price index C. By subtracting this year's price index from last year's price index, dividing the difference by this year's price index, and multiplying by 100 D. By subtracting last year's price index from this year's price index and dividing the difference by last year's price index and multiplying by 100. E. By dividing the real income by the nominal income and multiplying by 100. 4. What is the business cycle? A. The expansionary and contractionary phases in the growth rate of Real GDP B. The expansionary and contractionary phases in the rate of unemployment C. The continuous rise in GDP that Canada has experienced throughout the Twentieth Century D. The rise and fall in the rate of inflation 5. What is government spending on goods and services in excess of net tax revenue called? A Monetizing the debt B. A budget deficit C. A budget surplus D. Pro-cyclical fiscal policy. 6. What determines the supply of money! A. The demand for money B. The interest rate C. The velocity of money. D. The level of nominal income E. The Bank of Canada