Page 134 - Macroeconomics. book docx_Neat

Multiple Choice Questions (MCQs)

1. Unemployment refers to:

A. People who are not working and not looking for a job

B. People who are willing and able to work but cannot find a job

C. All people without income

D. Only seasonal workers

Answer: B

2. Inflation is best defined as:

A. An increase in production

B. A continuous rise in the general price level

C. A decrease in money supply

D. A fall in national income

Answer: B

3. Which of the following is a cause of demand-pull inflation?

A. Decrease in wages

B. Increase in aggregate demand

C. Increase in unemployment

D. Decrease in government spending

Answer: B

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