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QUESTION 25 The NAIRU: O is easy to measure. O occurs at the economy's level of potential output. ) does not change over time. O

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QUESTION 25 The NAIRU: O is easy to measure. O occurs at the economy's level of potential output. ) does not change over time. O All of these statements are true. QUESTION 26 During times of recession, the labour force participation rate typically: O rises, as more incomes per household are needed to make ends meet. O falls, as more people cannot find work, they stay in jobs that aren't a good fit. O rises, as more people need work. O falls, as more people give up and stop looking for work. QUESTION 27 If the economy is in a recession, in an effort to move the economy to the long-run equilibrium, the government could: O decrease spending to decrease aggregate demand. O increase spending to decrease aggregate demand. O decrease spending to increase aggregate demand. O increase spending to increase aggregate demand. QUESTION 28 The institution that is responsible for maintaining international monetary stability is: O the International Monetary Fund. the United Nations. the World Bank. the International Reserve Bank

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