The number of people who are unemployed plus the number of people who are employed is the ______________.

working-age population
workforce
population minus retirees
population

The unemployment rate is the percentage of people _______ who are unemployed.

who are not students
who are not retired
in the workforce
in the working-age population

The value of total production in an economy valued at constant dollars is _______________.

potential GDP
nominal GDP
real GDP
GDP

Real GDP is equal to potential GDP when ___________________.

economic growth is greater than usual
the business cycle is at a peak
labour, capital, land, and entrepreneurial ability are fully employed
unemployment is less than 10 per cent

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

a period of inflation
a period of stagflation
an expansion
a peak

The business cycle _____________.

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

One measure of the price level is the __________.

RPI
economic growth rate
average change in the RPI
inflation rate

When an inflation occurs, __________________.

the average level of prices is rising
petrol prices increase
all families spend more money on food
all prices are rising

Which of the following is not fiscal policy?

A cut in the interest rate
A program of building new motorways
An increase in unemployment benefits
A cut in income tax rates

The Bank of England during a time of inflation increases the interest rate. This is an example of __________.

monetary policy
a business cycle
causing a depression
fiscal policy