Question

QUESTION 8

1. Exante leakages equal exante injections only when:

   	A.	AE = C + Ip + G + X - M = Q = Y
   	B.	Q = Qfe
   	C.	AE = C + Ip + Iup + G + X - M = Q = Y
   	D.	G = T

1 points   

QUESTION 9

1. The unemployment level at the full-employment level of output:

   	A.	is equal to zero.
   	B.	comprises both frictional and structural unemployment.
   	C.	varies with the business cycle.
   	D.	comprises both voluntary and involuntary unemployment.

1 points   

QUESTION 10

1. An individual who is 15 or over, working 2 hours per week and actively looking for more hours of work is:

   	A.	unemployed.
   	B.	employed.
   	C.	not part of the workforce.
   	D.	included in the natural rate of unemployment.

Answer 1

8. (D) G = T

Reason: Exante leakages equal injections when savings equal investment or I+G = T+S

Since S = I, it also implies G = T

9.

B.comprises both frictional and structural unemployment

Reason: At natural rate of unemployment, frictional and structural unemployment exist

10.

Employed

Reason: As per the BLS, any individual working for more than 1 hour per week and less than 34 hours per week is counted as part time worker and is thus considered employed