Question 1

The real wage is

Accepted Answer

A)  procyclical. 
B)  countercyclical. 
C)  acyclical. 
D)  always too low. 
E)  higher than real GDP. 
A)  procyclical. 
B)  countercyclical. 
C)  acyclical. 
D)  always too low. 
E)  higher than real GDP.

Question 2

The 2008-2009 recession was more severe than all recent recessions except the one in

Accepted Answer

A)  1981-1982. 
B)  1974-1975. 
C)  1990-1991. 
D)  2001-2002. 
E)  1969-1973. 
A)  1981-1982. 
B)  1974-1975. 
C)  1990-1991. 
D)  2001-2002. 
E)  1969-1973.

Question 3

If the correlation between GDP and y is 0.75, we say y is

Accepted Answer

A)  procyclical. 
B)  countercyclical. 
C)  acyclical. 
D)  negatively correlated. 
E)  cyclical. 
A)  procyclical. 
B)  countercyclical. 
C)  acyclical. 
D)  negatively correlated. 
E)  cyclical.

Question 4

Real wages are defined as

Accepted Answer

A)  inflation-adjusted wages. 
B)  nominal wages plus the expected rate of inflation. 
C)  the purchasing power of the wage earned per hour worked. 
D)  income after adjusting for productivity. 
E)  the average money wage for all workers. 
A)  inflation-adjusted wages. 
B)  nominal wages plus the expected rate of inflation. 
C)  the purchasing power of the wage earned per hour worked. 
D)  income after adjusting for productivity. 
E)  the average money wage for all workers.

Question 5

The defining feature of business cycles is that they are

Accepted Answer

A)  changes in the trend component of real GDP. 
B)  fluctuations about trend in real GDP. 
C)  fluctuations about trend in the unemployment rate. 
D)  fluctuations about trend in the level of employment. 
E)  fluctuations about trend in standards of living. 
A)  changes in the trend component of real GDP. 
B)  fluctuations about trend in real GDP. 
C)  fluctuations about trend in the unemployment rate. 
D)  fluctuations about trend in the level of employment. 
E)  fluctuations about trend in standards of living.

Question 6

If real GDP helps to predict the path of a particular macroeconomic variable, it is said to be a

Accepted Answer

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

Question 7

If the correlation coefficient between x and y is equal to -1, we say that x and y are

Accepted Answer

A)  imperfectly negatively correlated. 
B)  perfectly negatively correlated. 
C)  lagging variables. 
D)  perfectly positively correlated. 
E)  countercyclical. 
A)  imperfectly negatively correlated. 
B)  perfectly negatively correlated. 
C)  lagging variables. 
D)  perfectly positively correlated. 
E)  countercyclical.

Question 8

For employment in Canada,

Accepted Answer

A)  seasonal variation is unimportant. 
B)  there is much more variation over the business cycle than from season to season. 
C)  the trend in seasonally adjusted employment is about the same as for seasonally unadjusted employment. 
D)  seasonally adjustment does not change measured employment much. 
E)  Statistics Canada does not provide seasonally adjusted employment data. 
A)  seasonal variation is unimportant. 
B)  there is much more variation over the business cycle than from season to season. 
C)  the trend in seasonally adjusted employment is about the same as for seasonally unadjusted employment. 
D)  seasonally adjustment does not change measured employment much. 
E)  Statistics Canada does not provide seasonally adjusted employment data.

Question 9

For the period 1961-2015 in Canada, the price level

Accepted Answer

A)  was uncorrelated with real GDP. 
B)  led changes in real GDP. 
C)  was acyclical. 
D)  lagged changes in real GDP. 
E)  was coincident with changes in real GDP. 
A)  was uncorrelated with real GDP. 
B)  led changes in real GDP. 
C)  was acyclical. 
D)  lagged changes in real GDP. 
E)  was coincident with changes in real GDP.

Question 10

Amplitude of the business cycle is

Accepted Answer

A)  the amount of volatility in the business during one year. 
B)  the size of the minimum deviation from trend. 
C)  where the turning points of the business cycle occur. 
D)  the size of the maximum deviation from trend. 
E)  the amount of employment and real GDP changes during one year. 
A)  the amount of volatility in the business during one year. 
B)  the size of the minimum deviation from trend. 
C)  where the turning points of the business cycle occur. 
D)  the size of the maximum deviation from trend. 
E)  the amount of employment and real GDP changes during one year.

Question 11

Forecasting real GDP is

Accepted Answer

A)  always easy. 
B)  easy in the long term, but hard in the short term. 
C)  easy in the short term, but hard in the long term. 
D)  easiest in terms of predicting turning points. 
E)  done as well by the average person as by economic forecasters. 
A)  always easy. 
B)  easy in the long term, but hard in the short term. 
C)  easy in the short term, but hard in the long term. 
D)  easiest in terms of predicting turning points. 
E)  done as well by the average person as by economic forecasters.

Question 12

Positive correlation between x and y implies that

Accepted Answer

A)  when x is high, y is high. 
B)  when x is high, y is low. 
C)  when x is zero, y is positive. 
D)  x and y are positively unrelated. 
E)  the trend is unpredictable. 
A)  when x is high, y is high. 
B)  when x is high, y is low. 
C)  when x is zero, y is positive. 
D)  x and y are positively unrelated. 
E)  the trend is unpredictable.

Question 13

Seasonal adjustment in macroeconomic analysis

Accepted Answer

A)  is not usually important. 
B)  is not necessary because economic activity tends to be too irregular for data-adjustment purposes. 
C)  is often appropriate because most macroeconomic time-series exhibit predictable seasonal patterns. 
D)  cannot be done because seasonal variation in production is extremely volatile and unstable. 
E)  should never be done because is can mask important seasonal phenomena. 
A)  is not usually important. 
B)  is not necessary because economic activity tends to be too irregular for data-adjustment purposes. 
C)  is often appropriate because most macroeconomic time-series exhibit predictable seasonal patterns. 
D)  cannot be done because seasonal variation in production is extremely volatile and unstable. 
E)  should never be done because is can mask important seasonal phenomena.

Question 14

In Canada, three important recessions occurred between

Accepted Answer

A)  1944-1946, 1951-1952, and 1962-1964. 
B)  1978-1979, 1984-1985, and 1988-1989. 
C)  1974-1975, 1981-1982, and 1990-1992. 
D)  1981-1982, 1996-1997, and 2003-2004. 
E)  1987-1988, 1994-1995, and 2002-2003. 
A)  1944-1946, 1951-1952, and 1962-1964. 
B)  1978-1979, 1984-1985, and 1988-1989. 
C)  1974-1975, 1981-1982, and 1990-1992. 
D)  1981-1982, 1996-1997, and 2003-2004. 
E)  1987-1988, 1994-1995, and 2002-2003.

Question 15

Comovement can be discussed by

Accepted Answer

A)  looking at the amplitude of the business cycle. 
B)  looking at the frequency of the business cycle. 
C)  looking at the peaks and troughs of the business cycle. 
D)  plotting the percentage deviations from trend in two economic variables. 
E)  economic forecasting models. 
A)  looking at the amplitude of the business cycle. 
B)  looking at the frequency of the business cycle. 
C)  looking at the peaks and troughs of the business cycle. 
D)  plotting the percentage deviations from trend in two economic variables. 
E)  economic forecasting models.

Question 16

A measure of the degree of correlation between two variables is a

Accepted Answer

A)  statistical correlation. 
B)  financial correlation. 
C)  correlation statistic. 
D)  correlation coefficient. 
E)  correlation variable. 
A)  statistical correlation. 
B)  financial correlation. 
C)  correlation statistic. 
D)  correlation coefficient. 
E)  correlation variable.

Question 17

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 choppy. 
B)  The time series of deviations from trend in real GDP is quite smooth. 
C)  There is no regularity to the amplitude of fluctuations in GDP below trend. 
D)  There is no regularity to the frequency of fluctuations in GDP below trend. 
E)  They are difficult to measure. 
A)  The time series of deviations from trend in real GDP is quite choppy. 
B)  The time series of deviations from trend in real GDP is quite smooth. 
C)  There is no regularity to the amplitude of fluctuations in GDP below trend. 
D)  There is no regularity to the frequency of fluctuations in GDP below trend. 
E)  They are difficult to measure.

Question 18

Why is it difficult to measure the cyclical properties of the real wage?

Accepted Answer

A)  Workers have money illusion. 
B)  Wages are sticky. 
C)  The composition of employed workers changes over the business cycle. 
D)  Firms refuse to report data on workers' wages. 
E)  monetary and fiscal policy intervention 
A)  Workers have money illusion. 
B)  Wages are sticky. 
C)  The composition of employed workers changes over the business cycle. 
D)  Firms refuse to report data on workers' wages. 
E)  monetary and fiscal policy intervention

Question 19

Why is forecasting GDP over the long term so difficult?

Accepted Answer

There are many variables that influence

Question 20

A business cycle trough 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.

The real wage is

The 2008-2009 recession was more severe than all recent recessions except the one in

If the correlation between GDP and y is 0.75, we say y is

Real wages are defined as

The defining feature of business cycles is that they are

If real GDP helps to predict the path of a particular macroeconomic variable, it is said to be a

If the correlation coefficient between x and y is equal to -1, we say that x and y are

For employment in Canada,

For the period 1961-2015 in Canada, the price level

Amplitude of the business cycle is

Forecasting real GDP is

Positive correlation between x and y implies that

Seasonal adjustment in macroeconomic analysis

In Canada, three important recessions occurred between

Comovement can be discussed by

A measure of the degree of correlation between two variables is a

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

Why is it difficult to measure the cyclical properties of the real wage?

Why is forecasting GDP over the long term so difficult?

A business cycle trough is a

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

The real wage is

The 2008-2009 recession was more severe than all recent recessions except the one in

If the correlation between GDP and y is 0.75, we say y is

Real wages are defined as

The defining feature of business cycles is that they are

If real GDP helps to predict the path of a particular macroeconomic variable, it is said to be a

If the correlation coefficient between x and y is equal to -1, we say that x and y are

For employment in Canada,

For the period 1961-2015 in Canada, the price level

Amplitude of the business cycle is

Forecasting real GDP is

Positive correlation between x and y implies that

Seasonal adjustment in macroeconomic analysis

In Canada, three important recessions occurred between

Comovement can be discussed by

A measure of the degree of correlation between two variables is a

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

Why is it difficult to measure the cyclical properties of the real wage?

Why is forecasting GDP over the long term so difficult?

A business cycle trough is a

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