Which of the following best defines inflation?
Cyclical increase in prices
Periodic increase in prices
Persistent increase in prices
Occasional increase in prices
Correct answer is C
Inflation is the persistent increase in the prices of goods and services over time.
Cyclical unemployment is one associated with
Inadequate information
Trade fluctuations
Structural changes
Seasonal changes
Correct answer is B
Cyclical unemployment is unemployment that results when the overall demand for goods and services in an economy cannot support full employment. Cyclical unemployment is when workers lose their jobs because of downturns in the business cycle.
Which of the following will increase the nominal value of national income?
High rate of inflation
Increase in the value of money
Increase in import
High rate of subsistence production
Correct answer is D
'Nominal' value of national income can be found by multiplying the quantity of output by the retail (market) price of this output. INcrease in the level of production, will increase the norminal value of national income which is the monetary value of outputs. But If demand increases at an unsustainable rate, resources become increasingly scarce, and firms will raise prices.
1%
7.5%
12.5%
20%
Correct answer is C
No explanation has been provided for this answer.
Money will serve as a standard of deferred payment if it is
Homogeneous
Durable
Easily recognized
Stable in value
Correct answer is D
Standard of deferred payment is a function of money. It is the function of being a widely accepted way to value a debt, thereby allowing goods and services to be acquired now and paid for in the future. For it to serve this purpose, it has to be able to retain its value overtime.