Economics Answers

which of the following statement regarding economic growth is correct
(1) real gross domestic product (GDP) measures the impact of economic growth on pollution and environmental degradation
(2) with the recent use of high-speed computers, economist are able to measure the size of the informal sector accurately
(3) an increase in real GDP per capita implies that income is more evenly distributed in the economy
(4) when measuring economic growth, changes in the prices and in the population should be taken into account

if the number of people classified as unemployed is 120000 and the number of those employed in the same year is 80000, what is the unemployment rate?
(1) 40%
(2) 66.7%
(3) 12%
(4) 8%

Kyla works for a fruit packing company in the western cape. however, she has been unable to find employment during certain periods of the year. this is an example of....
(1) structural unemployment
(2) cyclical unemployment
(3) seasonal unemployment
(4) frictional unemployment

which of the following statement regarding the types of unemployment is correct
(1) frictional unemployment is aused mainly by political frictional which gives rises to lower economic growth
(2) structural unemployment can be atributed mainly to a temporarily decline in the aggregate demand for goods and services
(3) an increase in aggregate demand for goods and services can reduce cyclical unemployment
(4) seasonal unemployment is usually associated with economic recessions

which one of the following statement regarding cost-push inflation is correct
(1) cost-push inflation can be combated by restricting consumption spending
(2) the fight against cost-push inflation inevitably leads to higher unemployment
(3) cot-push inflation always has a positive impact on production and employment in the economy
(4) stagflation is synonymous to cost-push inflation

which one of the following statement regarding demand-pull inflation is correct
(1) demand-pull inflation usually leads to increase in the general price level and unemployment
(2) demand-pull inflation can be combated by the reducing the interest rate
(3) demand-pull inflation is a result of expansionary policies
(4) demand-pull inflation provides a good explanation for te phenomenon of stagflation

the AD-AS model, a simultaneous decrease in output and price level in the economy is an outcome of ….
(1) a supply shock
(2) an increase in the cost of production
(3) contractionary demand management policies
(4) a reduction in wage rates bargained by labour unions

in the monetary transmission mechanism...
(1) an increase in the interest rate affects the total production in the economy, but has no effect on the general price level
(2) changes in the average tax rate are the main toll of policy implementation
(3) changes in the interest rate affect only the variables in the monetary sector of the economy
(4) investment spending is negatively relate to the interest rate

if an economy is experiencing high inflation rate and high unemployment rate simultaneously, an appropriate policy move would be to...
(1) apply an expansionary monetary policy
(2) let the market forces work without any intervention
(3) implement an income policy
(4) apply a restrictive fiscal policy

which one of the following factors will not affect aggregate supply, ceteris paribus?
(1) a decrease in productivity of labour
(2) an increase in government spending
(3) an increase in the price of the factores of production
(4) a decrease in crude oil prices