c. workers in Turkey are more productive than workers in the United Kingdom.
d. there are more instances of market power in Turkey than in the United Kingdom.
ANSWER: b
111. In the short run, which of the following is not correct?
a. Increasing the money supply increases the demand for goods and services.
b. Increasing the money supply encourages firms to hire more workers.
c. Lowering the money supply leads to a higher level of unemployment.
d. Policies that encourage higher employment will also induce a lower rate of inflation.
ANSWER: d
112. The business cycle is the
a. relationship between unemployment and inflation.
b. irregular fluctuations in economic activity.
c. positive relationship between the quantity of money in an economy and inflation.
d. predictable changes in economic activity due to changes in government spending and taxes.
ANSWER: b
113. Both the production of goods and services and the unemployment rate are used to measure
a. the business cycle.
b. productivity.
c. the interest rate.
d. inflation.
ANSWER: a