q6

All else equal, if an employed worker retires from their job:

Group of answer choices

The unemployment rate rises and the labour force participation rate rises

The unemployment rate falls and the labour force participation rate falls

The unemployment rate rises and the labour force participation rate falls

Not enough information to answer the question

The unemployment rate falls and the labour force participation rate rises

q7

Mrs. Chen's shares have been yielding a nominal rate of return of 4%. If the inflation rate is 6%, then the real rate of return on her shares is:

Group of answer choices

2%

-2%

10%

-10%

Real return cannot be negative

q8

A tax cut along with a reduction in government expenditure to maintain budget balance will:

Group of answer choices

reduce the size of the contractionary gap

have no effect on output

expand the size of the expansionary gap

expand the size of the contractionary gap

insufficient information to answer the question

q9

If potential output equals 8000 and short-run equilibrium output equals 9700, there is a ______ gap and the Reserve Bank must _____ real interest rates in order to close the gap.

Group of answer choices

expansionary; lower

contractionary; raise

expansionary; not change

contractionary; lower

expansionary; raise

q10

Consider the following economy. In this economy,Yis GDP,Cis consumption,Iis investment,Gis government purchases and T is net taxes. If there is no international trade, then national saving equals:

Group of answer choices

Y - C - I

Y - C - G - T

Y - C - T

Y - C - G

Y - G - T