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True or False
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1
Frictional unemployment is likely to be greatest in sunset industries.
A)True
B)False
2
The natural rate of unemployment is the unemployment rate at full employment.
A)True
B)False
3
If the number of job vacancies in an economy is equal to the number of people unemployed, then cyclical unemployment is zero.
A)True
B)False
4
Both male and female participation rates in Canada have been steadily rising for the past 20 years.
A)True
B)False
5
The higher the rate of inflation, the lower is the redistribution effect of inflation.
A)True
B)False
6
Cost–push inflation is caused by the total demand for goods and services exceeding the economy’s capacity to produce those goods.
A)True
B)False
7
The real interest rate is equal to the nominal interest rate plus the expected inflation rate.
A)True
B)False
8
Real GDP is equal to nominal GDP divided by the GDP deflator times 100.
A)True
B)False
9
If the annual inflation rate is 7 percent, then the price level will double in 10 years.
A)True
B)False
10
The labour force participation rate is the percentage of the working age population that is included in the labour force.
A)True
B)False







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