The number of people who are unemploymed plus the number who are employed is the _____________.

population minus retirees
population
labour force
working-age population

The dots in the figure shows that as the value of variable x increases, the value of variable y

The unemployment rate is the percentage of _____________ who are unemployed.

people in the labour force
the population minus students
working-age people
the worling-age population minus retirees

The value of total final production in an economy valued in constant dollars is __________.

real GDP
nominal GDP
GDP
potential GDP

Real GDP equals potential GDP when _________________.

labor, capital, land, and entrepreneurial ability are fully employed
the business cycle is at a peak
the unemployment rate is zero
economic growth is stronger than usual

In a business cycle, a peak is followed by a recession, a trough and then _________________.

an expansion
a period of increasing inflation and falling unemployment
a period of inflation
a peak

The business cycle __________________.

is periodic but irregular
can be accurately predicted
is the fluctuation around GDP
follows the phases of the moon

One measure of the price level is ________.

Consumer Price Index
the average level of oil prices
the average level of food prices
real GDP

When an inflation occurs, ______________

prices on the average are is rising
oil prices are rising
all families are spending more money on food
all prices are rising

Which of the following is not fiscal policy?

An increase in unemployment benefits
A cut in the income tax rates
A cut in the interest rate
A program to extend the nation's highway system

When the Bank of Canada expects the inflation rate to rise, it increases interest rates. Thsi is an example of the Bank of Canada's ______________.

fiscal policy
policy of creating recession
business cycle policy
monetary policy

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