If the actual rate of unemployment exceeds to natural rate of unemployment then (a) Actual output of the economy will fall below its potential ; (b) Production will increase more than potential ; (c) Consumption of goods decreases; (d) Both (a) and (c) above.

If the actual rate of unemployment exceeds to natural rate of unemployment then (a) Actual output of the economy will fall below its potential ; (b) Production will increase more than potential ; (c) Consumption of goods decreases; (d) Both (a) and (c) above.
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Answer :

(d) Both (a) and (c) above.
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During the recessionary phase of a business cycle: A. The natural rate of unemployment will increase dramatically B. Potential national income will exceed actual national income C. Actual national income will exceed potential national income D. The real rate of interest will exceed the nominal rate of interest.

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Which of the following is correct for the price ceiling which is set below the market‟s equilibrium price? (a) quantity demanded exceeds quantity supplied at the set price; (b) quantity demanded is less than quantity supplied at the set price ; (c) at the set price there is a surplus ; (d) None of above

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Full employment exists when there is (a) Zero unemployment ; (b) Natural rate of unemployment ; (c) Least demand for labor (d) Least supply of labor

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Structural unemployment is mainly due to (a) Structural changes in the economy ; (b) Technological development (c) Growth in GDP ; (d) Population explosion.

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The slope of the consumption curve connotes (a) Average propensity to save ; (b) Marginal Propensity to consume ; (c) Marginal propensity to save ; (d) Level of consumption in the economy.

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Last Answer : ; (b) Indirect taxes ;

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