The business sector will experience an unplanned increase in their level of inventories and this will provide a signal to business to cut back on their level of production.

The economy is at equilibrium so nothing will happen.

The business sector will experience an unplanned decrease in their level of inventories and this will provide a signal to business to cut back on their level of production.

The business sector will experience an unplanned increase in their level of inventories and this will provide a signal to business to increase their level of production.

The business sector will experience an unplanned decrease in their level of inventories and this will provide a signal to business to increase their level of production.

0.56

1.00

2.56

2.94

0.69

None of the other answers are correct.

0.60

0.40

Budget surplus of 29

Budget deficit of 90

Budget surplus of 54

Budget deficit of 54

Budget deficit of 29

Budget surplus of 90

None of the other answers are correct

Output will decrease back to potential and inflation will fall.

Output will decrease back to potential and inflation will rise.

Output will increase back to potential and inflation will fall.

Output will decrease back to potential and inflation will be unchanged.

Output will increase back to potential and inflation will rise

Nothing will happen in the short run.

There will be an expansionary output gap and inflation will be unchanged.

There will be an expansionary output gap and inflation will rise.

There will be a contractionary output gap and inflation will fall.

There will be a contractionary output gap and inflation will be unchanged.

$5

$13

$2

None of the other answers are correct

$10

$15.00

$32.50

$2.25

$19.75

None of the other answers are correct

50%

55%

60%

67%

Not enough information to answer this question

27.5%

45%

The natural unemployment rate is less than 4%.

The cyclical unemployment rate is 5.8%.

The frictional unemployment rate is 2.5%.

Labor force participation rate is 67%

None of the other answers are correct.

250 people are structurally unemployed in this country.

In the short run, inflation falls and output remains unchanged.

In the short run, inflation rises and output increases.

In the long run, inflation will be lower than the Reserve Bank’s target and potential output will increase.

In the long run, inflation will be lower than the Reserve Bank’s target and output will return to potential output.

In the long run, inflation will return to the Reserve Bank’s target and output will return to potential output.