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Self-test questions

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1

Trade cycle

In which phase of the trade cycle is inflation most likely to emerge?

a)
b)
c)
d)
Please select an answerYes, well done. A boom means rapid growth and this may cause demand-pull inflation to emerge.No, inflation is likely to fall in this phase.No, inflation is likely to remain low in this phase.No, inflation is likely to high or rising in this phase.
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2

Trade cycle

Which of the following is not a phase of the trade cycle?

a)
b)
c)
d)
Please select an answerNo, this is a phase of the business cycle.No, this is a phase of the business cycle.No, this is a phase of the business cycle.Yes, this may happen WITHIN the boom phase of the cycle.
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3

Trade cycle

In which phase of the business cycle is unemployment most likely to rise?

a)
b)
c)
d)
Please select an answerNo, unemployment is likely to be falling here. Higher demand for goods and services will lead to more jobs being created.Yes, well done. In a recession, demand is falling and this is likely to lead firms to lay off workers.No, unemployment may rise or it may begin to stabilise in this phase.No, unemployment is likely to be falling here.
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