Question : The natural rate of unemployment refers to the unemployment rate:

Option 1: During a recessionary period
  

Option 2: During an inflationary period
 

Option 3: At which there is no cyclical unemployment

Option 4: At which there is maximum employment

Question : A recession is characterized by:

Option 1: High inflation and high unemployment
   

Option 2: Low inflation and high unemployment
 

Option 3: High inflation and low unemployment

Option 4: Low inflation and low unemployment

Question : A recession is characterized by:

Option 1: High inflation and high unemployment
  

Option 2: Low inflation and high unemployment
    

Option 3: High inflation and low unemployment

Option 4: Low inflation and low unemployment

Question : The concept of the natural rate hypothesis suggests that:

Option 1: Unemployment will eventually return to its natural rate
   

Option 2: Unemployment can be permanently reduced through government intervention
 

Option 3: Inflation can be permanently reduced through government intervention

Option 4: Inflation and unemployment are unrelated

Question : Automatic stabilizers refer to:

Option 1: Government policies that automatically stabilize the economy during a recession
   

Option 2: Business practices that automatically stabilize the economy during a recession
 

Option 3: Changes in interest rates that automatically stabilize the economy during a recession

Option 4: Changes in tax rates that automatically stabilize the economy during a recession