8. In the ______________ stage of the business cycle, Real GDP reaches at the temporary lowest point.

A. trough

B. recovery

C. expansion

D. peak

9. The Consumer Price Index (CPI) is 195 in year 2020 and 180 in year 2021. What is the inflation rate

between 2020 and 2021? (Note: Please round your answer to 2 decimal places)

A. 7.69 %

B. -8.33 %

C. -7.69 %

D. -15 %

10. The consumer price index is calculated using the _____ of a fixed basket of goods purchased by

households.

A. total expenditure

B. average price

C. total quantity

D. index

11. Suppose a teacher in 1980 earns a salary of RM800 per month. The value of that salary in 2021 is

RM2700. The consumer price index for the year 2021 is 300. What is the consumer price index for the

year 1980? (Note: Please round your answer to 2 decimal places)

A. 126.32

B. 88.89

C. 1012.50

D. 100

12. Which of the following individuals is considered unemployed?

A. A student in full-time education

B. A prisoner in jail

C. A recently-fired worker who has given up searching for a job

D. A recent graduate waiting to start a job in a week

13. Which of the following factors is NOT considered part of the natural unemployment rate?

A. Economic recession due to a stock market crash

B. Jobs eliminated due to changes in the economy

C. Workers changing jobs

D. None of the above

14. Which of the following statements is/are TRUE?

I. The unemployment rate is calculated as the ratio of unemployed to the size of the country's

population

II. Full employment does not mean zero unemployment.

III. Discouraged workers are considered as unemployed.

A. I and II only

B. II and III only

C. II only

D. III only

15. Which of the following statements is/are TRUE?

I. Real income is inflation-adjusted income.

II. If nominal income increases, real income may decrease.

III. Real income is always less than nominal income.

A. I only

B. I and II only

C. II and III only

D. III only