1. The basic difference between macroeconomics and microeconomics is: microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior firms. O b. microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment. O d. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade.Real GDP is obtained by: O a. Nominal GDP divided by Real Prices. O b. Nominal GDP multiplied by price level. 3 6 Nominal GDP minus GDP deflator. Od. Nominal GDP divided by GDP deflator. Nominal GDP divided by CPI.Which of the following DOES NOT happen during periods of stagflation? 0 3. Inflation O b. An inward shift of the Aggregate Supply Curve 0 6 Economic growth O d. An increase in unemploymentis calculated by valuing all outputs at current prices, O a. nominal GDP. O b. actual GDP. O G real GDP. O d. potential GDP.What economic problem is shown in the graph provided? Supply shock Price O a. Stagflation O b. Recession O C Inflation Od. Economic GrowthIf Leakages are greater than Injections: a. the levels of income, output, expenditure and employment will rise causing a boom or expansion in economic activity. Ob. aggregate demand will be equal to aggregate supply. O C. the levels of income, output, expenditure & employment will fall causing a recession or contraction in the overall economic activity. O d. inflation is likely to occur.Which one of the three (3) approaches used to calculate Gross Domestic Product, is oftentimes referred to as the Value Added Approach? O a. Output Approach O b. Expenditure Approach O C Income Approach O d. Gross National ProductIf the number of people classified as unemployed is 20,000 and the number of people classified as employed is 230,000, what is the unemployment rate? O a. 92% O b. 8.7% O C. 8% Od. 11.5%In 2019, Mr. Francis paid $10m for a house that was built in 2019 and sold that year for $8m. What value will this transaction add to GDP in 2020? O a. $8m O b. $2m O C $0 Od. $10mIf Paul cannot find a job because his job skills have become obsolete, then; this is an example of? O a. cyclical unemployment. O b. frictional unemployment. O C . structural unemployment. O d. seasonal unemployment.One of the signs of a healthy economy is a(n) O a. declining real GDP O b. increasing real GDP O C. falling price level O d. rising price levelAt an income of $100,000, you spent $90,000 on consumer goods. When your income rose to $200,000, you spent $160,000 on consumer goods. Your marginal propensity to consume is: O a. 0.7 O b. 0.8 OC. 1 O d. 0.9