Question 1

One explanation for the better performance of the Canadian economy relative to the U.S.since the 2008-2009 recession is

Accepted Answer

A)  a better regulated financial sector in Canada. 
B)  more generous employment insurance benefits in Canada. 
C)  better fiscal stimulus in Canada relative to the U.S. 
D)  too much financial regulation in the U.S. relative to Canada. 
E)  a more resilient financial sector in the U.S. 
A)  a better regulated financial sector in Canada. 
B)  more generous employment insurance benefits in Canada. 
C)  better fiscal stimulus in Canada relative to the U.S. 
D)  too much financial regulation in the U.S. relative to Canada. 
E)  a more resilient financial sector in the U.S.

Question 2

Which of the following best describes the unemployment rate in Canada compared to the U.S.?

Accepted Answer

A)  It was higher in Canada before the 2008-2009 recession, then lower after. 
B)  It was lower in Canada before the 2008-2009 recession, then higher after. 
C)  They are generally equal. 
D)  They were equal before the 2008-2009 recession, then higher in Canada after. 
E)  It has been consistently lower in the U.S., before and after the 2008-2009 recession. 
A)  It was higher in Canada before the 2008-2009 recession, then lower after. 
B)  It was lower in Canada before the 2008-2009 recession, then higher after. 
C)  They are generally equal. 
D)  They were equal before the 2008-2009 recession, then higher in Canada after. 
E)  It has been consistently lower in the U.S., before and after the 2008-2009 recession.

Question 3

Real interest rates hit a low of -5% in

Accepted Answer

A)  1965. 
B)  1975. 
C)  1985. 
D)  1995. 
E)  2005. 
A)  1965. 
B)  1975. 
C)  1985. 
D)  1995. 
E)  2005.

Question 4

Sometimes it is useful to separate economic movements into

Accepted Answer

A)  short run growth from business cycle fluctuations. 
B)  short run growth from income movements. 
C)  employment growth from business cycle fluctuations. 
D)  long run growth from income movements. 
E)  long run growth from business cycle fluctuations. 
A)  short run growth from business cycle fluctuations. 
B)  short run growth from income movements. 
C)  employment growth from business cycle fluctuations. 
D)  long run growth from income movements. 
E)  long run growth from business cycle fluctuations.

Question 5

Improvements in a country's standard of living are brought about in the long run by

Accepted Answer

A)  immigration policy. 
B)  technological progress. 
C)  taxes. 
D)  growth in the population. 
E)  constructing more machines and buildings. 
A)  immigration policy. 
B)  technological progress. 
C)  taxes. 
D)  growth in the population. 
E)  constructing more machines and buildings.

Question 6

The relationship between the level of growth of an economic variable,gt,and its level,yt,is best approximated as

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 7

One consequence of government deficits is

Accepted Answer

A)  lower interest rates. 
B)  lower taxes. 
C)  reduced government borrowing. 
D)  reduced consumer spending. 
E)  redistribution of the tax burden from one group to another. 
A)  lower interest rates. 
B)  lower taxes. 
C)  reduced government borrowing. 
D)  reduced consumer spending. 
E)  redistribution of the tax burden from one group to another.

Question 8

Primarily,macroeconomists use microeconomic principles to study

Accepted Answer

A)  business cycles and trends in the stock market. 
B)  long-run economic growth and business cycles. 
C)  trends in the stock market and long-term economic growth. 
D)  long-run economic growth and employment policies. 
E)  short run and long run economic growth. 
A)  business cycles and trends in the stock market. 
B)  long-run economic growth and business cycles. 
C)  trends in the stock market and long-term economic growth. 
D)  long-run economic growth and employment policies. 
E)  short run and long run economic growth.

Question 9

The behaviour of the real interest rate since 2008 suggests the Bank of Canada

Accepted Answer

A)  decreased the growth rate of the money supply. 
B)  was primarily concerned with rising inflation. 
C)  increased the growth rate of the money supply. 
D)  was politically motivated in its actions. 
E)  kept the growth rate of the money supply roughly constant. 
A)  decreased the growth rate of the money supply. 
B)  was primarily concerned with rising inflation. 
C)  increased the growth rate of the money supply. 
D)  was politically motivated in its actions. 
E)  kept the growth rate of the money supply roughly constant.

Question 10

Macroeconomists use models

Accepted Answer

A)  to explain long-run economic growth. 
B)  to explain everything that occurs in the world. 
C)  to provide accurate descriptions of the world. 
D)  that explain government deficit and debt. 
E)  to explain international trade. 
A)  to explain long-run economic growth. 
B)  to explain everything that occurs in the world. 
C)  to provide accurate descriptions of the world. 
D)  that explain government deficit and debt. 
E)  to explain international trade.

Question 11

When a country has a current account balance deficit,the country

Accepted Answer

A)  always has a large government budget deficit. 
B)  is always borrowing from abroad. 
C)  is always lending abroad. 
D)  always has a large government budget surplus. 
E)  is always borrowing from domestic residents. 
A)  always has a large government budget deficit. 
B)  is always borrowing from abroad. 
C)  is always lending abroad. 
D)  always has a large government budget surplus. 
E)  is always borrowing from domestic residents.

Question 12

During the 2008-2009 recession in Canada,

Accepted Answer

A)  exports decreased. 
B)  inflation increased. 
C)  unemployment decreased. 
D)  exports increased. 
E)  the real interest rate increased. 
A)  exports decreased. 
B)  inflation increased. 
C)  unemployment decreased. 
D)  exports increased. 
E)  the real interest rate increased.

Question 13

The real interest rate is

Accepted Answer

A)  equal to the rate of inflation minus the nominal rate of interest. 
B)  always equal to the pure rate of time preference. 
C)  equal to the nominal rate of interest minus the rate of inflation. 
D)  less important for decision making than the nominal rate of interest. 
E)  the market interest rate. 
A)  equal to the rate of inflation minus the nominal rate of interest. 
B)  always equal to the pure rate of time preference. 
C)  equal to the nominal rate of interest minus the rate of inflation. 
D)  less important for decision making than the nominal rate of interest. 
E)  the market interest rate.

Question 14

What explains the trends in nominal interest rates?

Accepted Answer

A)  inflation rates 
B)  aggregate economic activity 
C)  standards of living 
D)  wages 
E)  consumer incomes 
A)  inflation rates 
B)  aggregate economic activity 
C)  standards of living 
D)  wages 
E)  consumer incomes

Question 15

Canada has had a current account surplus from

Accepted Answer

A)  the late 1960s. 
B)  1961-2005. 
C)  the late 1980s until the 2008-2009 recession. 
D)  the late 1990s until the 2008-2009 recession. 
E)  2002. 
A)  the late 1960s. 
B)  1961-2005. 
C)  the late 1980s until the 2008-2009 recession. 
D)  the late 1990s until the 2008-2009 recession. 
E)  2002.

Question 16

In the second half of the 20th century,the Canadian inflation rate was at its highest in the period from

Accepted Answer

A)  the mid-1980s to the early 1990s. 
B)  1990 to 2002. 
C)  1656 to the early 1970s. 
D)  1960 to the early 1970s. 
E)  the mid-1970s to the early 1980s. 
A)  the mid-1980s to the early 1990s. 
B)  1990 to 2002. 
C)  1656 to the early 1970s. 
D)  1960 to the early 1970s. 
E)  the mid-1970s to the early 1980s.

Question 17

Which of the following topics is a primary concern of macro economists?

Accepted Answer

A)  standards of living of individuals 
B)  choices of individual consumers and firms 
C)  short-run growth models. 
D)  relative wages of skilled and unskilled workers 
E)  fluctuations in the level of aggregate economic activity 
A)  standards of living of individuals 
B)  choices of individual consumers and firms 
C)  short-run growth models. 
D)  relative wages of skilled and unskilled workers 
E)  fluctuations in the level of aggregate economic activity

Question 18

In an economy with money,changing its quantity

Accepted Answer

A)  can stimulate long-run economic growth. 
B)  affects quantities, but not prices. 
C)  does not change real quantities. 
D)  improves welfare for the poor more than the rich. 
E)  changes real quantities in the long-run. 
A)  can stimulate long-run economic growth. 
B)  affects quantities, but not prices. 
C)  does not change real quantities. 
D)  improves welfare for the poor more than the rich. 
E)  changes real quantities in the long-run.

Question 19

When a country has a current account balance surplus,the country

Accepted Answer

A)  always has a large government budget deficit. 
B)  is always lending abroad. 
C)  is always borrowing from abroad. 
D)  always has a large government budget surplus. 
E)  is always borrowing from domestic residents. 
A)  always has a large government budget deficit. 
B)  is always lending abroad. 
C)  is always borrowing from abroad. 
D)  always has a large government budget surplus. 
E)  is always borrowing from domestic residents.

Question 20

The recovery from the 2008-2009 recession in Canada has been

Accepted Answer

A)  weak relative to other countries in the world. 
B)  roughly equivalent to the U.S. recovery. 
C)  close to a double-dip recession. 
D)  plagued by slow growth in real GDP. 
E)  strong relative to other countries in the world. 
A)  weak relative to other countries in the world. 
B)  roughly equivalent to the U.S. recovery. 
C)  close to a double-dip recession. 
D)  plagued by slow growth in real GDP. 
E)  strong relative to other countries in the world.

One explanation for the better performance of the Canadian economy relative to the U.S.since the 2008-2009 recession is

Which of the following best describes the unemployment rate in Canada compared to the U.S.?

Real interest rates hit a low of -5% in

Sometimes it is useful to separate economic movements into

Improvements in a country's standard of living are brought about in the long run by

The relationship between the level of growth of an economic variable,gt,and its level,yt,is best approximated as

One consequence of government deficits is

Primarily,macroeconomists use microeconomic principles to study

The behaviour of the real interest rate since 2008 suggests the Bank of Canada

Macroeconomists use models

When a country has a current account balance deficit,the country

During the 2008-2009 recession in Canada,

The real interest rate is

What explains the trends in nominal interest rates?

Canada has had a current account surplus from

In the second half of the 20th century,the Canadian inflation rate was at its highest in the period from

Which of the following topics is a primary concern of macro economists?

In an economy with money,changing its quantity

When a country has a current account balance surplus,the country

The recovery from the 2008-2009 recession in Canada has been

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: 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

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 1: Introduction

One explanation for the better performance of the Canadian economy relative to the U.S.since the 2008-2009 recession is

Which of the following best describes the unemployment rate in Canada compared to the U.S.?

Real interest rates hit a low of -5% in

Sometimes it is useful to separate economic movements into

Improvements in a country's standard of living are brought about in the long run by

The relationship between the level of growth of an economic variable,gt,and its level,yt,is best approximated as

One consequence of government deficits is

Primarily,macroeconomists use microeconomic principles to study

The behaviour of the real interest rate since 2008 suggests the Bank of Canada

Macroeconomists use models

When a country has a current account balance deficit,the country

During the 2008-2009 recession in Canada,

The real interest rate is

What explains the trends in nominal interest rates?

Canada has had a current account surplus from

In the second half of the 20th century,the Canadian inflation rate was at its highest in the period from

Which of the following topics is a primary concern of macro economists?

In an economy with money,changing its quantity

When a country has a current account balance surplus,the country

The recovery from the 2008-2009 recession in Canada has been

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: 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

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