Question 1

If the number of discouraged workers decreases because many of them start to look for work,everything else remaining the same,then the

Accepted Answer

A) unemployment rate will increase. 
B) employment-to-population ratio will decrease. 
C) labour force participation rate will increase. 
D) labour force participation rate will decrease. 
E) both A and C. 
A) unemployment rate will increase. 
B) employment-to-population ratio will decrease. 
C) labour force participation rate will increase. 
D) labour force participation rate will decrease. 
E) both A and C.

Question 2

If the labour force participation rate is rising and the working-age population is not changing,then the

Accepted Answer

A) size of the labour force is rising. 
B) number of unemployed people is rising and the size of the labour force is falling. 
C) size of the labour force is falling. 
D) number of unemployed people is falling and the size of the labour force is rising. 
E) number of employed people must be increasing. 
A) size of the labour force is rising. 
B) number of unemployed people is rising and the size of the labour force is falling. 
C) size of the labour force is falling. 
D) number of unemployed people is falling and the size of the labour force is rising. 
E) number of employed people must be increasing.

Question 3

If the CPI was 95 at the end of 2011 and 105 at the end of 2012,what was the inflation rate in 2012?

Accepted Answer

A) 10 percent 
B) 105 percent 
C) 9.5 percent 
D) 5 percent 
E) 10.5 percent 
A) 10 percent 
B) 105 percent 
C) 9.5 percent 
D) 5 percent 
E) 10.5 percent

Question 4

In a recession,typically

Accepted Answer

A) unemployment rises. 
B) the employment-to-population ratio decreases. 
C) the employment-to-population rate rises. 
D) the labour force participation rate rises. 
E) both A and B are correct. 
A) unemployment rises. 
B) the employment-to-population ratio decreases. 
C) the employment-to-population rate rises. 
D) the labour force participation rate rises. 
E) both A and B are correct.

Question 5

Which one of the following people would be counted as unemployed in Canada?

Accepted Answer

A) Doris works only 5 hours a week but is looking for a full-time job. 
B) Kanhaya has stopped looking for work since he was unable to find a suitable job during a two-month search. 
C) Sharon recently began looking for work after staying at home for 10 years to look after her children. 
D) Maurice is on a 2 month vacation out of the country but is still looking for a job using the internet. 
E) Taylor is a homemaker. 
A) Doris works only 5 hours a week but is looking for a full-time job. 
B) Kanhaya has stopped looking for work since he was unable to find a suitable job during a two-month search. 
C) Sharon recently began looking for work after staying at home for 10 years to look after her children. 
D) Maurice is on a 2 month vacation out of the country but is still looking for a job using the internet. 
E) Taylor is a homemaker.

Question 6

A zero percent unemployment rate

Accepted Answer

A) is one of the economic goals of the Canadian government. 
B) would alleviate scarcity. 
C) is not consistent with the notion of full employment. 
D) was last achieved during World War II when everyone was willing to work at the going wage rate to end the war. 
E) is the only efficient unemployment rate. 
A) is one of the economic goals of the Canadian government. 
B) would alleviate scarcity. 
C) is not consistent with the notion of full employment. 
D) was last achieved during World War II when everyone was willing to work at the going wage rate to end the war. 
E) is the only efficient unemployment rate.

Question 7

In a country with a working-age population of 20 million,13 million are employed,1.5 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.The labour force participation rate is

Accepted Answer

A) 75.5 percent. 
B) 72.5 percent. 
C) 65 percent. 
D) 57.5 percent. 
E) none of the above. 
A) 75.5 percent. 
B) 72.5 percent. 
C) 65 percent. 
D) 57.5 percent. 
E) none of the above.

Question 8

If the economy is at full employment,then

Accepted Answer

A) the entire population is employed. 
B) the entire labour force is employed. 
C) the only unemployment is frictional unemployment plus discouraged workers. 
D) the unemployment rate is less than 3 percent. 
E) all unemployment arises from normal frictions and structural change. 
A) the entire population is employed. 
B) the entire labour force is employed. 
C) the only unemployment is frictional unemployment plus discouraged workers. 
D) the unemployment rate is less than 3 percent. 
E) all unemployment arises from normal frictions and structural change.

Question 9

Since 1960,Canadian labour force participation rate has ________ and the unemployment rate has ________.

Accepted Answer

A) trended higher;trended higher 
B) trended lower;varied over the business cycle 
C) varied over the business cycle;trended higher 
D) trended higher;varied over the business cycle 
E) trended higher;trended lower 
A) trended higher;trended higher 
B) trended lower;varied over the business cycle 
C) varied over the business cycle;trended higher 
D) trended higher;varied over the business cycle 
E) trended higher;trended lower

Question 10

If the people who take early retirement are not counted in the working-age population,then

Accepted Answer

A) the unemployment rate would be lower. 
B) the labour force participation rate would be less. 
C) the unemployment rate would be higher. 
D) the labour force participation rate would be higher. 
E) none of the above. 
A) the unemployment rate would be lower. 
B) the labour force participation rate would be less. 
C) the unemployment rate would be higher. 
D) the labour force participation rate would be higher. 
E) none of the above.

Question 11

The CPIC ________.

Accepted Answer

A) does not overcome the source of bias in the CPI 
B) overcomes the sources of bias in the CPI by eliminating measures of the goods and services with the most volatile prices 
C) overcomes the sources of bias in the CPI by incorporating substitutions and using current and previous period quantities 
D) overcomes the sources of bias in the CPI by giving extra weight to the measures of the goods and services with the most volatile prices 
E) overcomes the sources of bias in the CPI by always using discount store prices 
A) does not overcome the source of bias in the CPI 
B) overcomes the sources of bias in the CPI by eliminating measures of the goods and services with the most volatile prices 
C) overcomes the sources of bias in the CPI by incorporating substitutions and using current and previous period quantities 
D) overcomes the sources of bias in the CPI by giving extra weight to the measures of the goods and services with the most volatile prices 
E) overcomes the sources of bias in the CPI by always using discount store prices

Question 12

Which one of the following people is frictionally unemployed? A steel worker who

Accepted Answer

A) loses her job because of technological change. 
B) is laid off but expects to be called back soon. 
C) gives up her job because she retires. 
D) decides to leave the labour force and become a full-time ballet student. 
E) becomes discouraged and stops looking for a job. 
A) loses her job because of technological change. 
B) is laid off but expects to be called back soon. 
C) gives up her job because she retires. 
D) decides to leave the labour force and become a full-time ballet student. 
E) becomes discouraged and stops looking for a job.

Exam 21: Monitoring Jobs and Inflation

If the number of discouraged workers decreases because many of them start to look for work,everything else remaining the same,then the

If the labour force participation rate is rising and the working-age population is not changing,then the

If the CPI was 95 at the end of 2011 and 105 at the end of 2012,what was the inflation rate in 2012?

In a recession,typically

Which one of the following people would be counted as unemployed in Canada?

A zero percent unemployment rate

In a country with a working-age population of 20 million,13 million are employed,1.5 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.The labour force participation rate is

If the economy is at full employment,then

Since 1960,Canadian labour force participation rate has ________ and the unemployment rate has ________.

If the people who take early retirement are not counted in the working-age population,then

The CPIC ________.

Which one of the following people is frictionally unemployed? A steel worker who

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Expenditure Multipliers: The Keynesian Model

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Since 1960,Canadian labour force participation rate has and the unemployment rate has .