Page 132 - Macroeconomics. book docx_Neat

5. Cyclical unemployment is caused by:

• A. Economic recession

• B. Job mobility

• C. Technology change

• D. Seasonal demand

6. Demand-pull inflation results from:

• A. Excess aggregate demand

• B. Rising wages

• C. Higher imports
• D. Currency depreciation

7. High public debt may lead to:

• A. Higher future tax burden

• B. Lower unemployment

• C. Automatic growth

• D. Price stability

8. Economic recession is:

• A. Long-term growth

• B. Increase in production

• C. Decline in economic activity

• D. Permanent stagnation

9. Unemployment can be reduced by:

• A. Higher interest rates
• B. Expansionary fiscal policy

• C. Spending cuts

• D. Import restrictions

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