01.Q. Define indexation
Ans. Indexation is a technique to adjust income payments by means of a price index, in order to maintain the purchasing power of the public after inflation, while deindexation is the unwinding of indexation.
02.Q. Define frictional unemployment
Ans. the unemployment which exists in any economy due to people being in the process of moving from one job to another.
03.Q. Define cyclical unemployment
Ans. It is a factor of overall unemployment that relates to the regular ups and downs, or cyclical trends in growth and production, that occur within the business cycle
04.Q. Define structural unemployment
Ans. unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demandz
05.Q. Define “full employment”
Ans. the condition in which virtually all who are able and willing to work are employed.
06.Q. Define Nominal Gross Domestic Product (GDP)
Ans. Nominal gross domestic product is gross domestic product (GDP) evaluated at current market prices.
07.Q. Define Real Gross Domestic Product (GDP)
Ans. the monetary value of all the finished goods and services produced within a country’s borders in a specific time period
08.Q. Define business investment spending
Ans. Investment spending may include purchases such as machinery, land, production inputs, or infrastructure.
09.Q. Briefly explain how the official unemployment rate is calculated.
Ans. it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force.
10.Q. In the case of agriculture,
Ans. the demand has shifted to the right less than the supply has shifted to the right