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1.Are the following statements true or false?
1 Frictional unemployment will be short term
2 Governments can encourage labour mobility if they want to reduce unemployment
A Both statements are true.
B Statement 1 is true and statement 2 is false.
C Statement 1 is false and statement 2 is true.
D Both statements are false. (2 marks)
2. Monetary policy is a government economic policy relating to:
1 Interest rates
2 Taxation
3 Public borrowing and spending
4 Exchange rates
Which of the above are correct?
A 1 and 4
B 2 and 3
C 2 and 4
D 3 and 4
