Page 136 - Macroeconomics. book docx_Neat

7. Economic recession is characterized by:

A. Rapid growth

B. Decline in economic activity

C. High inflation only

D. Increase in exports

Answer: B

8. Which policy is mainly used to control inflation?

A. Fiscal policy only

B. Monetary policy

C. Trade policy

D. Population policy

Answer: B

9. Unemployment affects the economy by:

A. Increasing output

B. Reducing national income

C. Raising productivity

D. Increasing investment

Answer: B

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