Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

Required: 
Write down which three of the above statements are correct by selecting THREE of 
the letters from A-F. 
(0.5 marks each, total = 1.5 marks) 
(Total: 4 marks) 
8
 
(a)
 
Here are four types of unemployment: 
A Cyclical 
B Real 
wage 
C Structural 
D Frictional 
Required: 
Identify the type of unemployment above which is associated with each of the 
following descriptions, by writing A, B, C or D. 
(i) 
Tends to occur in industries that are highly unionised 
(ii) Caused by aggregate demand in the economy being too low to create 
employment opportunities 
(iii) Short-term 
unemployment 
as people move between jobs 
(iv) 
Caused by changes in the skills required by the economy. 
 
 
(0.5 marks each, total = 2 marks) 
(b) Consider the following economics terms: 
A Deflationary 
gap 
B Fiscal 
policy 
C Monetary 
policy 
D Stagflation 
The following sentences contain gaps which are missing a particular term from the 
list above. 
Management of the Government’s taxation and spending plans is known as _1_. 
 
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PRACTICE MULTI-TASK QUESTIONS : 
S E CTI ON 2
K APLA N PUBLISH ING 
83 
Required:
(i) 
Select the term that appropriately fills gap 1 above; i.e. select A, B, C or D. 
Poor economic growth over an extended period can sometimes lead to rises in the 
prices of goods and services. This is referred to as _2_.