26. The following statements are incorrect except:

A. All sectors of the economy are affected to similar degrees by business fluctuations

B. Real output and employment generally show little variance over the business cycle

C. The production of nondurable consumer goods is more stable than the production of durable consumer goods over the business cycle

D. Recessions have not been severe because economists and statisticians have been able to predict their occurrence and intensity with high accuracy

27. Sofia has lost her job from KIA because the company switched to robots for its welding step in the assembly line. She plans to go to technical school to learn how to repair microcomputers. The type of unemployment Sofia is faced with is:

A. Cyclical

B. Frictional

C. Structural

D. Natural

28. The following statements are incorrect except:

A. It is relatively easy to distinguish between cost-push and demand-pull inflation even if you don't know the source of the inflation

B. A supply shock will cause a variation of demand-pull inflation that can lead to hyperinflation

C. Demand-pull inflation will continue so long as there is excess total spending in the economy

D. Demand-pull inflation is usually accompanied by higher unemployment rates

29. Suppose, only capital and labor are used in Malaysian economy to produce an output of 300 million units. If the total cost of capital resources is RM100 million and the total cost of labor resources is RM100 million, then the per-unit production costs in this economy are:

A. RM2.00

B. RM1.50

C. RM0.67

D. RM3.00

30. During the Covid-19 crisis of the year 2020:

A. real interest rates and investment spending both declined

B. real interest rates and investment spending both increased

C. real interest rates increased, choking off investment spending

D. real interest rates decreased but expected returns from investment remained unchanged.