Page 131 - Macroeconomics. book docx_Neat

D. Unemployment

1. Unemployment refers to:

• A. Individuals willing and able to work but unable to find jobs

• B. Total labor force

• C. People working part-time

• D. Informal employment

2. Inflation mainly causes:

• A. Increase in purchasing power

• B. Reduction in purchasing power
• C. Stable prices

• D. Increase in real wages

3. A budget deficit occurs when:

• A. Revenues exceed expenditures

• B. Savings exceed investment

• C. Expenditures exceed revenues

• D. Taxes increase

4. External debt means:

• A. Domestic loans

• B. Private sector borrowing

• C. Internal debt
• D. Foreign borrowing

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