Economics Answers

Real GDP per capita growth is calculated by...

1) Real GDP divided by the population
2) Rate of change in nominal GDP
3) Nominal GDP multiplied by the population growth rate
4) Rate of change in real GDP per capita

The phillips curve shows that a decrease in aggregate demand will result in....and....

1) A decrease in unemployment rate; a decrease in inflation rate
2) An increase in unemployment rate; a decrease in inflation rate
3) An increase in unemployment rate; a decrease in inflation rate
4) A decrease in unemployment rate; an increase inflation rate

What will happen to the unemployment rate and the inflation rate if the SARB decides to increase the interest rate?

1) The unemployment rate will decrease and the inflation rate will increase
2) The unemployment rate will increase and the inflation rate will decrease
3) Both the unemployment rate and the inflation rate will increase
4) Both the unemployment rate and the inflation rate will decrease

During an upswing phase, cyclical unemployment will...and inflation will...

1) Increase; decrease
2) decrease; decrease
3) decrease; increase
4) increase; increase

Which of the following statements is/are correct?

a) Suppose the real GDP in 2005 is 400, and is 420 in 200. This shows that economic growth in 2006 is 20%
b) If the economy is in the cyclical upswing, the policy makers should solve the problem by raising the taxes
c) Domestic demand is primarily a function of income

1) a
2) b
3) b and c
4) a and c
5) All the statements are correct

........................ is NOT likely to cause a problem in the measurement of GDP.

1) Pollution
2) Smuggling
3) Commercial Farming
4) Adjustment of original data

If the base year prices are used during the measurement of GDP, then the.................is obtained.

1) Current GDP
2) Gross national product
3) Real GDP
4) Nominal GDP

When measuring the GDP, ................ should be considered.

a) Changes in population
b) Changes in unemployment
c) Changes in prices

1) b
2) c
3) a and c
4) b and c
5) All the statements are correct

Which of the following statements is/are correct regarding unemployment in the Keynesian and the AD-AS models?

a) In the production function, all the inputs are assumed to be fixed
b) The slope of the production function increases as the level of unemployment decreases
c) An increase in the real production always implies that unemployment rate will decline

1) b
2) a
3) b and c
4) a and b
5) Non of the above statements

.................would result due to the closure of the gold mines in South Africa.

1) Seasonal unemployment
2) Structural unemployment
3) Cyclical unemployment
4) Frictional unemployment