Inflation

Prices rise as a result of excessive business and consumer demand.

• Demand-Pull Inflation

• Cost-Push Inflation

Increase in the factors of production will push up prices.

• Demand-Pull Inflation

• Cost-Push Inflation

It refers to a situation in which the workers who are capable of working and willing to work does not get a job.

• employment

• inflation

• unemployment

• CPI

A certain amount of unemployment is natural in any economy, but too much of it can be a threat to economic stability

• True

• False

Temporary unemployment

• Cyclical

• Structural

• Seasonal

• Frictional

Unemployment occurs because human labors are no longer needed in the job.

• Cyclical

• Structural

• Seasonal

• Frictional

Unemployment associated with up and down fluctuations in the business cycle.

• Frictional

• Seasonal

• Cyclical

• Structural

Unemployment caused by the changes in the seasons or the weather.

• Frictional

• Seasonal

• Cyclical

• Structural

The increase in economic activity that follows the trough is called recession.

• True

• False

Business cycle is unpredictable.

• True

• False