C5 : SET 5 - UNEMPLOYMENT AND INFLATION

Recovery phase of the business cycle is when real GDP reaches its minimum after rising.

• TRUE

• FALSE

Structural unemployment is when an individual fails to get a job due to skill matching problem.

• TRUE

• FALSE

Seasonal unemployment is experienced by a university graduate who is intensively searching for a job.

• TRUE

• FALSE

Cyclical unemployment exists when excessive government spending causes the general price level to increase.

• TRUE

• FALSE

Demand pull inflation occurs when aggregate demand exceeds the aggregate supply.

• TRUE

• FALSE

Cost push inflation refers to a decrease in the general price level associated with the decreases in the cost of production.

• TRUE

• FALSE

Cost push inflation is the result of the buyers‟ activities.

• TRUE

• FALSE

Inflation is giving an advantage to fixed income earner and retirees.

• TRUE

• FALSE