Explanation​:
Seasonal unemployment is a type or cause of unemployment, not one of the difficulties of measuring unemployment.

Choices A, C, and B are all factors making the measurement of unemployment unreliable.

Explanation​:

The following are adjustments made to GDP to allow for more accurate comparisons over time and between countries:

• • Adjustment for inflation: converts nominal figures into real figures
• • Adjustment for nationality: converts GDP to GNI
• • Adjustment for population size: converts total figures into per capita figures

While inflation, nationality, and population size are commonly adjusted for, there is no commonly used national income measure that adjusts for inequality (Choice D). While it is useful to measure income inequality and use it to compare between countries, it is not necessarily relevant to GDP calculations and adjustments.

Explanation​:
Choice D incorrectly describes speculative demand for money. It suggests that money has inherent value and that people speculate on the appreciation of money itself. However, speculative demand for money occurs when people anticipate a change in interest rates and prefer to hold money over interest-bearing assets.
Choice A describes the transactions motive.
Choice B describes the precautionary motive.
Choice C describes the speculative motive.

B

Explanation​:
The data shows South Sudan is experiencing negative inflation rates or deflation.

Thus, the equation becomes:
real interest rate = nominal interest rate − ($-$) inflation rate,

making the real interest rate greater than the nominal interest rate (Choice B).

GDP=C+I+G+(X−M)

Choices A and D are incorrect because saving and taxes are never included in GDP. Choice B is incorrect because the equation calculates net exports incorrectly.

Explanation​:
Statement I is correct because deregulation lowers production costs and makes it easier for new competitors to enter the market. These outcomes encourage competition.

Statement II is incorrect because personal income tax cuts fall under market-based supply-side policies relating to incentives, rather than encouraging competition.

Statement III is correct because removing barriers to trade will allow foreign businesses to compete with domestic businesses. This competition incentivises domestic firms to be more efficient.

Statement IV is incorrect because abolishing minimum wages falls under market-based supply-side policies that are aimed at making the labour market more flexible rather than policies to encourage competition.

Explanation​:

Leakages involve income earned that is not spent on domestic goods and services. Leakages include: saving, taxes, and import spending.

Export revenue is an injection into the circular flow, not a leakage.

Therefore, choices A, C, and D are incorrect because export revenue is an injection, not a leakage.

Explanation​:
The goals of a central bank are focused on achieving short-term economic stability. These objectives include achieving low and stable inflation, implementing inflation targeting (choice A), reducing unemployment rates (choice B), and minimizing fluctuations in the business cycle (choice D).

Choice C is the correct answer because it is usually attributed to the goal of the executive branch of government and not the central bank.

Explanation​:
Choice D is the correct answer because it shows that the equilibrium price level would increase without any increase in the equilibrium GDP level. This occurs when the economy has reached the full employment real GDP and there are no unused factors of production. Increasing AD causes inflation without any growth to real GDP.

Choice A is incorrect because it shows a scenario of growth without any inflation.
Both choices B and C depict a scenario of growth with inflation where both the equilibrium APL and real GDP increase.

Explanation​:
There is often a conflict between achieving economic growth and environmental sustainability. The pursuit of better economic well-being for citizens and increased efficiency of the economic system does not always guarantee environmental sustainability.

Economic growth is often accompanied by job creation and improvements in the standard of living of many citizens, so choices A and B are likely to be true. Economic growth often means an increase in total output produced by the economy, which involves the use of more resources and the production of more waste, so choice C is likely to be true.

It is least likely that economic growth is accompanied by decreases in greenhouse gas emissions, and thus choice D is the least likely to be true.

Explanation‾Explanation​:
The unemployment rate is calculated using the following equation:

Number of unemployed/Size of labor force × 100

500 000/8 million × 100 = 6.25%

Choice B divides the number of unemployed by the working age population, rather than the size of the labor force.

Choice C adds discouraged workers to the number of unemployed.

Choice D adds discouraged workers and divides by population of working age.

Explanation​:

Choice B

• If the ECB purchases government securities (bonds), it increases the money supply as it pays bondholders.
• If the ECB lowers the reserve requirement, commercial banks have more excess reserves for more loanable funds that increase credit creation and the money supply.
• If the ECB decreases the interest rate that it charges commercial banks (minimum lending rate or discount rate), banks borrow more and can lend more, increasing the money supply.

Choices A, C, and D include actions that decrease the money supply

• selling securities
• raising the reserve requirement
• increasing the minimum lending rate

Explanation​:
Statement I is incorrect. Discretionary spending refers to changes in spending that require a decision to be made by the government. Such changes are not automatic.

Statement II is correct. Progressive taxation and unemployment benefits act as automatic stabilisers. In countries with a more progressive income tax and a larger welfare state, the impact of automatic stabilisers will be more significant.

Statement III is correct. Automatic stabilisers make the business cycle less volatile, keeping the growth rate lower in $\text{‘}$boom$\text{’}$ periods.

Explanation​:
A decrease in sales taxes will lower production costs for businesses across the economy, which increases short-run aggregate supply, reducing inflationary pressure.

Choice A will cause demand-pull inflation. Choices B and C will cause cost-push inflation. Therefore, choices A, B, and C are causes of inflation.

Explanation​:

Explanation​:
A shift of the SRAS curve to the left constitutes a negative supply shock and will push the economy into a period of stagflation, where the economy is experiencing both inflation and recession. As a result, the inflation rate rises and the unemployment rate rises as well.

Choice A would be the result of AD shifting rightward.

Choice B would be the result of AD shifting leftward.

Choice D would be the result of SRAS shifting rightward.

Explanation​:
Short-run equilibrium occurs at the intersection of AD and SRAS. Long-run equilibrium occurs when AD = SRAS = LRAS. Therefore, at point $A$, the economy is in short-run equilibrium only.

Explanation​:
LRAS shifts rightward when there is an increase in the quantity or quality of factors of production (FOPs), improvements in technology, increases in efficiency, or improvements in institutions.

Choices I and II: both will shift LRAS to the right. An increase in immigration increases the quantity of labour, and improvements in technology will increase efficiency in production, improving the quality of FOPs.

Choices III and IV are determinants of SRAS that would lower production costs and thus shift the SRAS curve rightward. Indirect taxes and production costs do not affect the quality or quantity of FOPs, so LRAS is unaffected.

Explanation​:
While many governments pursue policies such as tariffs to protect their domestic producers from cheap imports, this is not a goal of supply-side policies, but rather of trade protection policies.

Choices A, B, and D are all goals of supply-side policies.

Explanation​:
Statement I is a limitation because interventionist supply-side policies involve a long time lag between implementation and seeing the desired effects.

Statement II is not a valid point when discussing the effectiveness of interventionist supply-side policies (these polices are very costly and do burden the government budget).

Statement III is an advantage of interventionist supply-side policies because the government can target the sectors it deems most important for growth.

Explanation​:
A fall in interest rates will make borrowing cheaper, and so encourage investment expenditure: aggregate demand (AD) will increase in the short-run.

Moreover, investment is the spending on the creation or replacement of capital, so in the long run, the quantity of capital will increase, leading to an increase in long-run aggregate supply (LRAS).

Choices A, C, and D will lead to an increase in AD in the short run, but are unlikely to cause an increase in LRAS in the long run.

Explanation​:

The AS curve shifts when there are changes in the costs of factors of production or indirect taxes (VAT). The AD curve shifts when there is a change in domestic consumption, investment, government spending, or net exports.

A cut in income tax would increase AD (AD1​ to AD2​), increasing disposable income and domestic consumption. A rise in indirect taxes would decrease AS (AS1​ to AS3​), as it would increase production costs across the economy.

Options A, B, and C are the three dimensions in which poverty is measured using MPI

Explanation​:
Interventionist supply-side policies may be a burden on the government budget but they often lead to a more equitable distribution of income, and less economic inequality.

Choices A, C, and D are possible drawbacks of such policies: they are expensive and may place an unsustainable burden on national debt, they involve long time-lags, and the increased government spending may create inflationary pressures in the economy.

Explanation​:
When the short-run RGDP equilibrium level exceeds the full employment level of GDP, the economy is experiencing an inflationary gap. Contractionary monetary policy is required to decrease aggregate demand, which involves shifting the AD curve to the left. This shift reduces both the aggregate price level and the short-run RGDP equilibrium level, ultimately helping to close the inflationary gap.

I and IV are examples of contractionary monetary policy.

II and III are examples of expansionary monetary policy.