20) When people give up actively looking for work, other things being equal, theSelect one:
a. working-age population decreases.
b. unemployment rate increases.
c. they are no longer counted as unemployed
d. labour force participation rate increases.
21)The demand for restaurant meals increases as the government-imposed lockdown laws are gradually relaxed. As a result, restaurants hire more workers. This would lead to a decrease in
a. cyclical unemployment
b. natural unemployment
c. frictional unemployment
d. structural unemployment
22) If the number employed is 12 million, the working-age population is 16 million, and the number unemployed is 0.9 million, then the unemployment rate is —.
b. none of the answers is correct
23)The demand for Canadian dollar will not be affected by
a. A Canadian firm that wants to purchase Australian iron ore.
b. An Australian investor who wants to buy Canadian shares.
c. A hedge fund manager that expects a large appreciation in the value of the Canadian dollar.
d. An Australian bank that wants to buy Canadian government debt.
24) A country imports $15 billion worth of goods and services, while its sales of goods and services to other country is $18 billion. If it's net primary income is $4 billion and net secondary income is $1 billion then it has
a. deficit of $38 billion in its current account.
b. $11 billion surplus in its current account.
c. $8 billion surplus in its current account.
d. $6 billion surplus in its current account.
25) Suppose that the real GDP is $14 trillion, potential GDP is $16 trillion and taxes were cut by 500 billion to bring economy to the full employment. The implied value of the tax multiplier is
d. None of these options is correct. Taxes should be increased in this case.
26) If Marta, a full-time worker starts working part-time to spend more time with her family, the
a. economy will move away from the full employment.
b. official unemployment rate will not change.
c. official unemployment rate will fall.
d. official unemployment rate will increase