1. Which of the following are criticisms of the use of GDP to reflect standards of living?

(a)Non-market activities are not included in GDP measures

(b)Pollution and environmental degradation effects are not included in GDP measures

(C) Illegal activity and the underground economy are not included in GDP measures

(d) All of the given answers

2)Okun's Law is best defined as the relationship between:

(a)output and the price level

(b)output and total unemployment

(c)output and the difference between actual unemployment and the natural rate of unemployment

(d) none of the given answers

3) In classical theory, expansionary fiscal policy is likely to be inflationary because:

(a)The economy is assumed to be operating at the full employment level of output

(b) The aggregate supply curve is vertical

(c)The economy is operating at a point on the production possibility frontier

(d)All of the given answers

4)Which of the following events is least likely to contribute to higher inflation rates?

(a)prolonged restrictions on attendance at workplaces in response to Covid-19

(b)the 'great resignation'

(c)a shipping accident that blocks the Suez canal

(d)higher interest rates