1.Real GDP is GDP adjusted to inflation.

A)True B) False

2.The unemployment rate is the percentage of people in the population that are unemployed.

True B) False

3.)Frictional unemployment is the unemployment that takes place when there is mismatch between the skills and the requirements needed for available jobs in the market.

1. True B) False

4) The natural rate of unemployment is the amount of unemployment that is unavoidable.

1. True B) False

5) Deflation is an increase in the overall price level.

1. True B) False

6) The peak is a cycle in the economy where real GDP is rising significantly.

1. True B) False

7) If the nominal interest rate is 6% and the inflation rate is 2% then the real interest rate is 4%.

1. True B) False

8) Economic output or GDP, can be measured in 2 ways: expenditure approach or the income approach

1. True B) False

9) Disposable income in economics is any personal income available after-tax and consumption, and it is kept usually as savings.

1. True B) False

10) Land, Labour, Capital and entrepreneurship are the 4 groups of resource categories used in production.

1. True B) False

11) A decrease in the price levels causes the quantity of real GDP demanded to fall.

1. True B) False

12) The long-run aggregate supply curve is horizontal.

1. True B) False

13) The economy will always be at the intersection of the aggregate demand curve and the short run aggregate supply curve, at the natural rate of output.

1. True B) False

14) Ceteris paribus means holding everything else constant.

1. True B) False

15) Canada's federal income tax rate is considered part of the country's monetary policy.

1. True B) False

16) Tax cuts and increased government spending increases aggregate demand.

1. True B) False

17) Which of these is not a major macroeconomic goal?

1. Keeping prices relatively stable.
2. Achieving economic growth.
3. Minimizing government expenditures.
4. Maintaining unemployment at the lowest level.
5. None of the above.

18) In 2017, a country called Atlantis had a population of 1,200,000 out of which 900,000 constituted the labour force. Only 630,000 were employed. Atlantis unemployment rate for 2017 was:

A)75% B) 70% C) 52.5% D) 30% E) None of these

19) Based on the information from question 2, Atlantis labour participation rate for 2017 was:

1. 75% B) 25% C) 52.5% D) 30% E) None of these

20) Which of the following is not a category of unemployed workers?

1. Job losers
2. Job leavers
3. Job choosers
4. Re-entrants
5. New-entrants

21) People being unemployed, after getting fired, would count in:

1. Frictional unemployment
2. Structural unemployment
3. Cyclical unemployment
4. Natural unemployment
5. None of the above

22) People being unemployed, due to a recession in the economy, would count in:

1. Frictional unemployment
2. Structural unemployment
3. Cyclical unemployment
4. Natural unemployment
5. None of the above

23) Unemployment is falling during?

1. Expansion
2. Peak
3. Recession
4. Trough
5. None of the above.

24) Real GDP is falling during?

1. Expansion
2. Peak
3. Recession
4. Trough
5. None of the above

25) Employment is at its maximum during?

1. Expansion
2. Peak
3. Recession
4. Trough
5. None of the above

26) Which of these is incorrect?

1. Contraction also means recession
2. Boom is a period of a prolonged recession
3. The trough is when output stops declining
4. Contraction is when output is declining
5. None of the above

27) Which of the following is not part of the GDP calculation under the expenditure method?

1. Consumption
2. Investment
3. Government expenditures
4. Net exports
5. None of the above

28) Which of these is considered a semi-durable good?

1. A meal at A&W
2. A physiography session
3. A truck
4. Headphones
5. Flight tickets

Use the following to answer questions 29 and 30

During 2006, a country called Atlantis had the following figures:

\fUse the following to answer questions 13 and 14: During 2006, a country called Atlantis had the following figures: Items in $ Fixed Investments 100 million Inventory Investments 240 million Corporate Taxes collected 20 million Depreciation 20 million Personal income taxes collected 380 million Exports 1,200 million Imports 700 million Government purchases 110 million Consumption 850 million