please choose correct answer and no explanation or working required.

Which of the following would be considered macro-economic variables

a.

The output and prices of beds produced by Melsha's Furniture Store

b.

The total number or workers employed by Courts

c.

The price of beverages produced by Banks DIH and DDL

d.

Exchange rate and general prices

Which of the following statement is correct

a.

Trough is the point where economic activity is at a temporary maximum.

b.

Peak is the phase where recession is at its lowest level

c.

Recessions last at least 3 months

d.

A recession is a period of decline in an economy's total output usually lasting at least six months

Which of the following isnota measure of inflation

a.

Household price index

b.

Consumer price index

c.

Producer price index

d.

GDP Deflator

Mike is 13 years old but is actively seeking employment to assist his single parent mother.

a.

Unemployed

b.

Underemployed

c.

Child labour

d.

Discouraged worker

Which of the following does not explain what is potential growth

a.

Potential growth is the value of GDP anticipated over a 5 year period.

b.

Potential output is determined by the economy's productive capacity and technological efficiency.

c.

Potential growth represents the maximum sustainable level of output that the economy can produce.

d.

Potential growth is where there is a high utilization of the labour force and capital stock

Gross private investment (I) as a component of AD = C + I+ G+ (X-M) refers to

a.

Inventory maintained by firms

b.

Spending by firms on wages and salaries

c.

Household investment

d.

Demand by firms for factories, machinery, capital goods etc.

Assuming a simple economy where total production consists of widgets, chalk and gizmos at the price levels cited in the table below,

Units

Prices

Widgets

Chalk

Gizmos

Widgets

Chalk

Gizmos

Year 1

360

85

1,300

55.00

0.08

8.00

Year 2

570

95

800

60.00

0.05

12.00

What is the value of nominal GDP for year 1?

a.

$25,000

b.

$30,207

c.

26,000

d.

26,005

Which of the following is most likely to occur during a time of recession

a.

A decrease in the unemployment rate

b.

A decrease in the interest rate

c.

An increase in the price level

d.

A decrease in real output

After looking for a job of over 3 months. Josh stopped looking because he is convinced that he will not find a suitable job. Josh would be classified as

a.

Unemployed

b.

Discouraged worker

c.

Child labour

d.

Underemployed

Use the table to answer the question

US$ billion

Consumption

9,900

Gross Investment

1,900

Transfer payments

1,090

Government expenditures

1,900

Exports

1,650

Imports

950

Net foreign factor income

50

Depreciation

10

What is the value of gross national product (GNP)

a.

$14,450

b.

$18,520

c.

$16,520

d.

$17,520

What happens to the labour market if a minimum wage is set above the equilibrium wage?

a.

There is excess demand for workers

b.

There is a shortage of workers

c.

Unemployment is created

d.

Nothing

How does inflation affect society

a.

All of the other responses

b.

Erodes purchasing power

c.

Breeds uncertainty

d.

Affects business investment

What is disposableincome?

a.

Personal income plus government transfers

b.

Personal income plus remittances

c.

Personal income minus savings

d.

Personal income minus taxes

The Philips curve shows that the relationship between unemployment and inflation is

a.

Inverse

b.

Inelastic

c.

Indeterminable

d.

Positive

Which of the following is true regarding the LRAS curve

a.

It is affected by expectations

b.

It is positively sloped

c.

It is horizontal at the natural rate of output

d.

This level of production is also referred to as potential output or full-employment output

Macroeconomics is concerned with

a.

The way households manage their budgets

b.

The specific parts that make up an economic system

c.

Economic aggregates and the overall performance of the economy

d.

Profit maximizing decisions by firms

Answer the question based on the table below;

Nominal GDP

GDP deflator

Population

Nominal Per Capita GDP

Real GDP

Rate of real output growth

Year

Year 1

5,400

125

13

415

43

-

Year 2

6,800

150

14

486

45

4.9

Year 3

12,500

160

18

694

78

72

What is the value of Per Capita GDP in Year 1?

a.

$530

b.

$870

c.

$800

d.

$415

Zeb bank gave a loan to John at an interest rate of 10% to be repaid within 2 years. By the end of year 2, the money John paid Zeb bank had a lower real value that the initial money borrowed, due to:

a.

Unanticipated inflation

b.

Stagnation

c.

Deflation

d.

Anticipated inflation

When workers lack the skills necessary to get a job, they are ________________ unemployed.

a.

Seasonally

b.

Frictionally

c.

Cyclically

d.

Structurally

Stagflation occurs when the economy experiences

a.

rising prices and rising output.

b.

falling prices and falling output.

c.

falling prices and rising output.

d.

rising prices and falling output.