11.

The relationship between the, real interest rate, inflation and nominal interest rate is known as theRequired to answer. Single choice.

none of both

fisher equation

inflation equation

12.

Real interest rate is equal to the nominal interest rate minus inflationRequired to answer. Single choice.

True

False

13.

If the marginal propensity to consume MPC is 1, the value of the MPS isRequired to answer. Single choice.

5

0.75

zero

14.If policy makers choose to try to move the economy out of a recession, they should use their policy tools to decrease aggregate demandRequired to answer. Single choice.

False

True

15.Economic growth is defined as "the process where

by the--------------of a country

increases over a long period of timeRequired to answer. Single choice.

real income

GNP

real per capita income

16.When there are vacancies in the job-market, but also high levels of unemployment, then we could say that this unemployment is?Required to answer. Single choice.

Regional

Cyclical

Structural

17.Which of the following would not influence the rate of inflation?Required to answer. Single choice.

Whether the rate was expected

The number of people affected by inflation

The rate at which prices are rising

18.If the nominal interest rate is 6 per cent and the inflation rate is 3 per cent, the real interest rate isRequired to answer. Single choice.

3 per cent

18 per cent

9 per cent

19.Okun's law says, when cyclical unemployment increases from 2 to 4%, the output gap increases from ___ %.Required to answer. Single choice.

4 to 8

2 to 4

-2 to -4

20.Development of technology shifts the investment demand curve to the rightRequired to answer. Single choice.

true

false