Question

1. After a decrease in the interest rate we can expect to see

Select one:

a. a decrease in investment spending.

b. a decrease in government spending.

c. an increase in consumption spending.

d. a decrease in net exports.

2. Australian labour market could be considered to be at ‘full employment’

Select one:

a. when all unemployment is voluntary

b. when the cyclical unemployment is zero

c. when there are more unemployed workers than job vacancies

d. once the Job Keeper subsidy is completely phased out

3. If John is a ‘discouraged worker’, then

Select one:

a. he is considered to be out of the labour force

b. he is still considered to be part of the labour force

c. he is counted as unemployed

d. he is entitled to an income subsidy

4. The inflation rate

Select one:

a. will always be lower during a recession

b. is equal to the percentage change in the price level between time periods.

c. all of the given answers are correct

d. cannot be negative

Answer 1

1.C) An increase in consumption spending

After a decrease in the interest rate we can see an increase in consumption spending.because when interest rates are low people will spent more.

2.B) when the cyclical unemployment is zero

Australian labour market could be considered to be at full employment when the cyclical unemployment is zero.

3.A) He is considered to be out of the labour force

If John is discouraged worker then he is considered to be out of the labour force.discourage worker means person not in the labour force who want and are available for job . discouraged worker are no longer looking for employment they are not counted as active in the labour force.

4.C) All of the given answers are correct

The inflation rate will always be lower during a recession.it is equal to the percentage change in the price level between time period.