Professional Documents
Culture Documents
Test 2
Test 2
com/forms/d/1TBoIPaknyWqcPMxMXIDoiqEosCPmiteAifAprI5to6s
11. The GDP of the economy is 5 billion and that the economy has replaced capital
goods worth 0.8 billion, net factor income from abroad is 0.65 billion. Calculate
Net National product (4.85 million)
12. Money is a medium of exchange; as a result the money (Will only be held for
transactions purposes).
13. Which of the following tends to diminish the ability of Zimbabwe commercial
banks to lend money? (The increase of the reserve requirement).
14. An increase in the price of bonds corresponds to the decrease in (interest rates)
15. The goals of a government are to reduce interest rates, stimulate private
investment, and decrease unemployment. The policy strategy that would
guarantee the achievement of all of those goals is (increasing the money supply).
16. The two main determinant of money demand are (interest rates, income)
17. The following can be stated: (An increase in the money supply must always cause
national income to rise).
18. causes of inflation in Zimbabwe (the government closing down all unlicensed
firms)
19. the following is a solution of cost push inflation (price controls)
20. when the council and the government closes down all illegal businesses it causes
(structural inflation)
21. it is believed that paying salaries in USD increased the income of an ordinary
Zimbabwean. This also caused (demand pull inflation) since there is not much
production in Zimbabwe.
22. Increasing salaries of civil servants causes (demand pull inflation) and can be
define as too much (money chasing too few goods)
23. Inflation redistributes income from creditors to (debtors) and from (wage) earners
to (profit) earners
24. A 22 year old Chinhoyi University student is considered to be part of the
Zimbabwe labour force. (False)
25. An increase in cyclical unemployment is experienced during a (recession)
26. Frictional unemployment is due to the fluctuations of the business cycles in
Zimbabwe (false)
27. A decrease in demand causes (cyclical) unemployment,
28. The following is a reason for structural unemployment? (changes in technology)
29. Which is a type of unemployment? (frictional)
30. According to the Philips curve inflation rate and unemployment rate are
(negatively related) in the short run