Question 1

Real investment tends to be

Accepted Answer

A)  procyclical and less variable than real GDP. 
B)  procyclical and more variable than real GDP. 
C)  countercyclical and less variable than real GDP. 
D)  countercyclical and more variable than real GDP. 
E)  acyclical with real GDP. 
A)  procyclical and less variable than real GDP. 
B)  procyclical and more variable than real GDP. 
C)  countercyclical and less variable than real GDP. 
D)  countercyclical and more variable than real GDP. 
E)  acyclical with real GDP. B

Question 2

Average labour productivity is computed as the

Accepted Answer

A)  ratio of industrial production to the employment rate. 
B)  ratio of real output in manufacturing to the level of real GDP. 
C)  ratio of real GDP to the unemployment rate. 
D)  ratio of real GDP to the level of employment. 
E)  ratio of labour input to real GDP. 
A)  ratio of industrial production to the employment rate. 
B)  ratio of real output in manufacturing to the level of real GDP. 
C)  ratio of real GDP to the unemployment rate. 
D)  ratio of real GDP to the level of employment. 
E)  ratio of labour input to real GDP. D

Question 3

If a macroeconomic variable tends to aid in predicting the future path of real GDP, it is said to be a

Accepted Answer

A)  convenient variable. 
B)  coincident variable. 
C)  leading variable. 
D)  lagging variable. 
E)  correlated variable. 
A)  convenient variable. 
B)  coincident variable. 
C)  leading variable. 
D)  lagging variable. 
E)  correlated variable. C

Question 4

The defining feature of business cycles is that they

Accepted Answer

A)  are inherently bad. 
B)  represent the underlying trend of real GDP in the economy. 
C)  are fluctuations about trend in real GDP. 
D)  measure prospects for future growth in the economy. 
E)  measure standards of living and productivity. 
A)  are inherently bad. 
B)  represent the underlying trend of real GDP in the economy. 
C)  are fluctuations about trend in real GDP. 
D)  measure prospects for future growth in the economy. 
E)  measure standards of living and productivity.

Question 5

If we plotted the level of good cholesterol in the blood against the incidence of heart disease, we would observe a(n)

Accepted Answer

A)  negative correlation. 
B)  positive correlation. 
C)  zero correlation. 
D)  uncertain result. 
E)  time series. 
A)  negative correlation. 
B)  positive correlation. 
C)  zero correlation. 
D)  uncertain result. 
E)  time series.

Question 6

Comovement can be discerned by

Accepted Answer

A)  calculating the percentage deviations from trend in real GDP. 
B)  whether it is a procyclical or countercyclical variable. 
C)  calculating the correlation coefficient between the percentage deviations from trend. 
D)  determining if it is a lagging or leading indicator. 
E)  looking at the composite index of business leading indicators. 
A)  calculating the percentage deviations from trend in real GDP. 
B)  whether it is a procyclical or countercyclical variable. 
C)  calculating the correlation coefficient between the percentage deviations from trend. 
D)  determining if it is a lagging or leading indicator. 
E)  looking at the composite index of business leading indicators.

Question 7

The value of macroeconomic knowledge is in

Accepted Answer

A)  understanding macro phenomena and guiding policy. 
B)  producing forecasts. 
C)  accurately forecasting stock prices. 
D)  understanding firm level behaviour. 
E)  accurately predicting recessions. 
A)  understanding macro phenomena and guiding policy. 
B)  producing forecasts. 
C)  accurately forecasting stock prices. 
D)  understanding firm level behaviour. 
E)  accurately predicting recessions.

Question 8

Average labour productivity tends to be a(n)

Accepted Answer

A)  lagging variable. 
B)  coincident variable. 
C)  leading variable. 
D)  acyclical variable. 
E)  variable that is difficult to classify. 
A)  lagging variable. 
B)  coincident variable. 
C)  leading variable. 
D)  acyclical variable. 
E)  variable that is difficult to classify.

Question 9

For the period 1976-2015, employment in Canada was

Accepted Answer

A)  procyclical and leading. 
B)  procyclical and lagging. 
C)  countercyclical and leading. 
D)  countercyclical and lagging. 
E)  coincident. 
A)  procyclical and leading. 
B)  procyclical and lagging. 
C)  countercyclical and leading. 
D)  countercyclical and lagging. 
E)  coincident.

Question 10

A business cycle peak is a

Accepted Answer

A)  small positive deviation from trend in real GDP. 
B)  relatively large positive deviation from trend in real GDP. 
C)  small negative deviation from trend in real GDP. 
D)  relatively large negative deviation from trend in real GDP. 
E)  minimum deviation from trend in real GDP. 
A)  small positive deviation from trend in real GDP. 
B)  relatively large positive deviation from trend in real GDP. 
C)  small negative deviation from trend in real GDP. 
D)  relatively large negative deviation from trend in real GDP. 
E)  minimum deviation from trend in real GDP.

Question 11

If deviations from trend in a macroeconomic variable are positively correlated with deviations from trend in real GDP, that variable is said to be

Accepted Answer

A)  useful in predicting future movements in real GDP. 
B)  procyclical. 
C)  countercyclical. 
D)  acyclical. 
E)  uncorrelated. 
A)  useful in predicting future movements in real GDP. 
B)  procyclical. 
C)  countercyclical. 
D)  acyclical. 
E)  uncorrelated.

Question 12

Comovement can be determined by

Accepted Answer

A)  examining a scatter plot. 
B)  economic forecasting models. 
C)  determining whether a series leads or lags. 
D)  determining the persistence in a series. 
E)  marking peaks and troughs. 
A)  examining a scatter plot. 
B)  economic forecasting models. 
C)  determining whether a series leads or lags. 
D)  determining the persistence in a series. 
E)  marking peaks and troughs.

Question 13

The property that macroeconomic variables fluctuate together in patterns that exhibit strong regularities is called

Accepted Answer

A)  coincidence. 
B)  comovement. 
C)  correlation. 
D)  coexistence. 
E)  a leading indicator. 
A)  coincidence. 
B)  comovement. 
C)  correlation. 
D)  coexistence. 
E)  a leading indicator.

Question 14

Inventory investment tends to be

Accepted Answer

A)  coincident. 
B)  leading. 
C)  lagging. 
D)  so unchanging that it is hard to classify. 
E)  procyclical. 
A)  coincident. 
B)  leading. 
C)  lagging. 
D)  so unchanging that it is hard to classify. 
E)  procyclical.

Question 15

Before 2000, the three most recent Canadian recessions occurred in

Accepted Answer

A)  1969-1973, 1979-1982, and 1994-1995. 
B)  1973-1975, 1982-1985, and 1990-1991. 
C)  1974-1975, 1981-1982, and 1990-1992. 
D)  1981-1982, 1990-1991, and 1998-1999. 
E)  1944-1945, 1955-1956, and 1990-1992. 
A)  1969-1973, 1979-1982, and 1994-1995. 
B)  1973-1975, 1982-1985, and 1990-1991. 
C)  1974-1975, 1981-1982, and 1990-1992. 
D)  1981-1982, 1990-1991, and 1998-1999. 
E)  1944-1945, 1955-1956, and 1990-1992.

Question 16

Which of the following is a feature of recent Canadian business cycles?

Accepted Answer

A)  The time series of deviations from trend in real GDP is quite smooth. 
B)  There is regularity in fluctuations in real GDP about trend. 
C)  There is regularity in the amplitude of fluctuations in real GDP about trend. 
D)  They are not persistent. 
E)  There is no regularity in the amplitude of fluctuations in real GDP about trend. 
A)  The time series of deviations from trend in real GDP is quite smooth. 
B)  There is regularity in fluctuations in real GDP about trend. 
C)  There is regularity in the amplitude of fluctuations in real GDP about trend. 
D)  They are not persistent. 
E)  There is no regularity in the amplitude of fluctuations in real GDP about trend.

Question 17

The Phillips curve shows the relationship between

Accepted Answer

A)  real and nominal interest rates. 
B)  real and nominal GDP. 
C)  money prices and aggregate economic activity. 
D)  procyclical and countercyclical variables. 
E)  lagging an leading variables. 
A)  real and nominal interest rates. 
B)  real and nominal GDP. 
C)  money prices and aggregate economic activity. 
D)  procyclical and countercyclical variables. 
E)  lagging an leading variables.

Question 18

The Composite Index of Business Leading Indicators tends to

Accepted Answer

A)  lag income growth. 
B)  lag employment growth. 
C)  lead employment growth. 
D)  lead inflation. 
E)  lead real GDP. 
A)  lag income growth. 
B)  lag employment growth. 
C)  lead employment growth. 
D)  lead inflation. 
E)  lead real GDP.

Question 19

If we plotted cigarettes smoked per year against the incidence of lung cancer, we would observe a(n)

Accepted Answer

A)  negative correlation. 
B)  positive correlation. 
C)  zero correlation. 
D)  uncertain result. 
E)  time series. 
A)  negative correlation. 
B)  positive correlation. 
C)  zero correlation. 
D)  uncertain result. 
E)  time series.

Question 20

Why is forecasting GDP in the long run so difficult?

Accepted Answer

A)  There is no expertise in forecasting the long-run trend in real GDP. 
B)  There is no regularity in the frequency and amplitude of fluctuations in real GDP. 
C)  These is an absence of data that provides any information on future trends. 
D)  Current models are not sophisticated enough to conduct this exercise. 
E)  Structural and statistical forecasting provide differing results. 
A)  There is no expertise in forecasting the long-run trend in real GDP. 
B)  There is no regularity in the frequency and amplitude of fluctuations in real GDP. 
C)  These is an absence of data that provides any information on future trends. 
D)  Current models are not sophisticated enough to conduct this exercise. 
E)  Structural and statistical forecasting provide differing results.

Real investment tends to be

Average labour productivity is computed as the

If a macroeconomic variable tends to aid in predicting the future path of real GDP, it is said to be a

The defining feature of business cycles is that they

If we plotted the level of good cholesterol in the blood against the incidence of heart disease, we would observe a(n)

Comovement can be discerned by

The value of macroeconomic knowledge is in

Average labour productivity tends to be a(n)

For the period 1976-2015, employment in Canada was

A business cycle peak is a

If deviations from trend in a macroeconomic variable are positively correlated with deviations from trend in real GDP, that variable is said to be

Comovement can be determined by

The property that macroeconomic variables fluctuate together in patterns that exhibit strong regularities is called

Inventory investment tends to be

Before 2000, the three most recent Canadian recessions occurred in

Which of the following is a feature of recent Canadian business cycles?

The Phillips curve shows the relationship between

The Composite Index of Business Leading Indicators tends to

If we plotted cigarettes smoked per year against the incidence of lung cancer, we would observe a(n)

Why is forecasting GDP in the long run so difficult?

Introduction

Measurement

Consumer and Firm Behaviour: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

A Monetary Intertemporal Model: Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters

Exam 3: Business Cycle Measurement

Real investment tends to be

Average labour productivity is computed as the

If a macroeconomic variable tends to aid in predicting the future path of real GDP, it is said to be a

The defining feature of business cycles is that they

If we plotted the level of good cholesterol in the blood against the incidence of heart disease, we would observe a(n)

Comovement can be discerned by

The value of macroeconomic knowledge is in

Average labour productivity tends to be a(n)

For the period 1976-2015, employment in Canada was

A business cycle peak is a

If deviations from trend in a macroeconomic variable are positively correlated with deviations from trend in real GDP, that variable is said to be

Comovement can be determined by

The property that macroeconomic variables fluctuate together in patterns that exhibit strong regularities is called

Inventory investment tends to be

Before 2000, the three most recent Canadian recessions occurred in

Which of the following is a feature of recent Canadian business cycles?

The Phillips curve shows the relationship between

The Composite Index of Business Leading Indicators tends to

If we plotted cigarettes smoked per year against the incidence of lung cancer, we would observe a(n)

Why is forecasting GDP in the long run so difficult?

Introduction

Measurement

Consumer and Firm Behaviour: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

A Monetary Intertemporal Model: Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters