Question 1

In the period 1961-2011,the CPI inflation rate in Canada

Accepted Answer

A)  varied very little. 
B)  matters greatly for contracts which are geared to the inflation rate. 
C)  has little impact on monetary policy. 
D)  has been equal to the inflation rate in the GDP price deflator. 
E)  has been a good predictor of the inflation rate in the GDP price deflator. 
A)  varied very little. 
B)  matters greatly for contracts which are geared to the inflation rate. 
C)  has little impact on monetary policy. 
D)  has been equal to the inflation rate in the GDP price deflator. 
E)  has been a good predictor of the inflation rate in the GDP price deflator.

Question 2

The expenditure approach to calculating GDP includes

Accepted Answer

A)  wage income. 
B)  investment. 
C)  all forms of taxation. 
D)  the sum of government spending on goods and services, transfer payments, and interest on the national debt. 
E)  corporate profits. 
A)  wage income. 
B)  investment. 
C)  all forms of taxation. 
D)  the sum of government spending on goods and services, transfer payments, and interest on the national debt. 
E)  corporate profits.

Question 3

Approaches to measuring GDP include

Accepted Answer

A)  cost approach. 
B)  GDP approach. 
C)  income approach. 
D)  trade approach. 
E)  value-subtracted approach. 
A)  cost approach. 
B)  GDP approach. 
C)  income approach. 
D)  trade approach. 
E)  value-subtracted approach.

Question 4

The expenditure approach to calculating GDP includes

Accepted Answer

A)  consumption. 
B)  intermediate goods. 
C)  wage income. 
D)  net factor payments. 
E)  taxes. 
A)  consumption. 
B)  intermediate goods. 
C)  wage income. 
D)  net factor payments. 
E)  taxes.

Question 5

When we try to measure real GDP and the price level,if we underestimate the growth in real GDP,we will

Accepted Answer

A)  always underestimate the rate of inflation. 
B)  sometimes underestimate the rate of inflation. 
C)  always overestimate the rate of inflation. 
D)  sometimes overestimate the rate of inflation. 
E)  not be able to measure the rate of inflation. 
A)  always underestimate the rate of inflation. 
B)  sometimes underestimate the rate of inflation. 
C)  always overestimate the rate of inflation. 
D)  sometimes overestimate the rate of inflation. 
E)  not be able to measure the rate of inflation.

Question 6

Unemployment in Canada in the mid-1990s was approximately

Accepted Answer

A)  10% higher than in the U.S. 
B)  4% higher than in the U.S. 
C)  the same as in the U.S. 
D)  4% lower than in the U.S. 
E)  2% lower than in the U.S. 
A)  10% higher than in the U.S. 
B)  4% higher than in the U.S. 
C)  the same as in the U.S. 
D)  4% lower than in the U.S. 
E)  2% lower than in the U.S.

Question 7

In Canada,real GDP is currently calculated using

Accepted Answer

A)  a variable-weighting scheme. 
B)  a chain-weighting scheme. 
C)  a fixed-weighting scheme. 
D)  an autoregressive scheme. 
E)  constant-inflation scheme. 
A)  a variable-weighting scheme. 
B)  a chain-weighting scheme. 
C)  a fixed-weighting scheme. 
D)  an autoregressive scheme. 
E)  constant-inflation scheme.

Question 8

If a particular measure of real GDP consistently underestimates growth in real GDP,then the rate of inflation as measured by the GDP deflator

Accepted Answer

A)  will consistently be overestimated. 
B)  will consistently be underestimated. 
C)  will be overestimated and underestimated equally often. 
D)  cannot be calculated. 
E)  is not a good predictor of the inflation rate in the CPI. 
A)  will consistently be overestimated. 
B)  will consistently be underestimated. 
C)  will be overestimated and underestimated equally often. 
D)  cannot be calculated. 
E)  is not a good predictor of the inflation rate in the CPI.

Question 9

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:
  
-What is the real GDP in year 2 using base year 1?

Accepted Answer

A)  $418. 
B)  $300. 
C)  $360. 
D)  $338. 
E)  $294. 
A)  $418. 
B)  $300. 
C)  $360. 
D)  $338. 
E)  $294.

Question 10

Construction of chain-weighted real GDP employs the technique of a

Accepted Answer

A)  Herfindahl index. 
B)  Fisher index. 
C)  Gini index. 
D)  Body mass index. 
E)  Inflation rate index. 
A)  Herfindahl index. 
B)  Fisher index. 
C)  Gini index. 
D)  Body mass index. 
E)  Inflation rate index.

Question 11

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:
  
-What is approximately the growth rate of real GDP using base year 1?

Accepted Answer

A)  13% 
B)  20% 
C)  33% 
D)  39% 
E)  25% 
A)  13% 
B)  20% 
C)  33% 
D)  39% 
E)  25%

Question 12

Jim's Nursery produces and sells $1100 worth of flowers.Jim uses no intermediate inputs.He pays his workers $700 in wages,pays $100 in taxes and pays $200 in interest on a loan.Jim's profit is

Accepted Answer

A)  $100. 
B)  $200. 
C)  $400. 
D)  $800. 
E)  $1000. 
A)  $100. 
B)  $200. 
C)  $400. 
D)  $800. 
E)  $1000.

Question 13

Investment spending is

Accepted Answer

A)  a smaller share of GDP than consumption. 
B)  a larger share of GDP than consumption. 
C)  less volitile than consumption. 
D)  less volitile than GDP. 
E)  the share of stock prices to GDP. 
A)  a smaller share of GDP than consumption. 
B)  a larger share of GDP than consumption. 
C)  less volitile than consumption. 
D)  less volitile than GDP. 
E)  the share of stock prices to GDP.

Question 14

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:
  
-What is the inflation rate using base year 1?

Accepted Answer

A)  10% 
B)  15% 
C)  20% 
D)  25% 
E)  13% 
A)  10% 
B)  15% 
C)  20% 
D)  25% 
E)  13%

Question 15

What is the difference between real and nominal GDP?

Accepted Answer

Nominal GDP is the production of goods a

Question 16

GDP is published by Statistics Canada as part of the

Accepted Answer

A)  GDP Statistical Review. 
B)  Labour Force Statistics. 
C)  National Income and Expenditure Accounts (NIE
A) . 
D)  Survey of Current Business. 
E)  Current Population Survey. 
A)  GDP Statistical Review. 
B)  Labour Force Statistics. 
C)  National Income and Expenditure Accounts (NIE
A) . 
D)  Survey of Current Business. 
E)  Current Population Survey.

Question 17

Which of the following represents a measurement issue that may help explain the difference in Canadian and U.S.unemployment rates?

Accepted Answer

A)  Unemployment in Canada includes those who are only passively searching for work. 
B)  The U.S. counts as employed those who have a job but have not yet started work. 
C)  Unemployment in the U.S. includes people who would be considered out of the labour force in Canada. 
D)  Unemployment in Canada includes only those who are actively searching for work. 
E)  Unemployment in the U.S. includes those who are only passively searching for work. 
A)  Unemployment in Canada includes those who are only passively searching for work. 
B)  The U.S. counts as employed those who have a job but have not yet started work. 
C)  Unemployment in the U.S. includes people who would be considered out of the labour force in Canada. 
D)  Unemployment in Canada includes only those who are actively searching for work. 
E)  Unemployment in the U.S. includes those who are only passively searching for work.

Question 18

When there is rapid inflation,

Accepted Answer

A)  growth in nominal GDP exceeds growth in real GDP. 
B)  growth in real GDP exceeds growth in nominal GDP. 
C)  growth in real GDP and nominal GDP are roughly equal. 
D)  there can never be any growth in nominal GDP. 
E)  government tries to increase growth in real GDP. 
A)  growth in nominal GDP exceeds growth in real GDP. 
B)  growth in real GDP exceeds growth in nominal GDP. 
C)  growth in real GDP and nominal GDP are roughly equal. 
D)  there can never be any growth in nominal GDP. 
E)  government tries to increase growth in real GDP.

Question 19

Additions to the nation's capital stock are brought about through

Accepted Answer

A)  the current account surplus. 
B)  investment. 
C)  investment and the current account surplus. 
D)  investment and the government budget surplus. 
E)  government deficit. 
A)  the current account surplus. 
B)  investment. 
C)  investment and the current account surplus. 
D)  investment and the government budget surplus. 
E)  government deficit.

Question 20

The components of consumption expenditures include

Accepted Answer

A)  nondurable goods consumption. 
B)  purchases of used cars and books. 
C)  government consumption. 
D)  investment in stocks and bonds. 
E)  donations. 
A)  nondurable goods consumption. 
B)  purchases of used cars and books. 
C)  government consumption. 
D)  investment in stocks and bonds. 
E)  donations.

In the period 1961-2011,the CPI inflation rate in Canada

The expenditure approach to calculating GDP includes

Approaches to measuring GDP include

The expenditure approach to calculating GDP includes

When we try to measure real GDP and the price level,if we underestimate the growth in real GDP,we will

Unemployment in Canada in the mid-1990s was approximately

In Canada,real GDP is currently calculated using

If a particular measure of real GDP consistently underestimates growth in real GDP,then the rate of inflation as measured by the GDP deflator

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is the real GDP in year 2 using base year 1?

Construction of chain-weighted real GDP employs the technique of a

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is approximately the growth rate of real GDP using base year 1?

Jim's Nursery produces and sells $1100 worth of flowers.Jim uses no intermediate inputs.He pays his workers $700 in wages,pays $100 in taxes and pays $200 in interest on a loan.Jim's profit is

Investment spending is

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is the inflation rate using base year 1?

What is the difference between real and nominal GDP?

GDP is published by Statistics Canada as part of the

Which of the following represents a measurement issue that may help explain the difference in Canadian and U.S.unemployment rates?

When there is rapid inflation,

Additions to the nation's capital stock are brought about through

The components of consumption expenditures include

Introduction

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 2: Measurement

In the period 1961-2011,the CPI inflation rate in Canada

The expenditure approach to calculating GDP includes

Approaches to measuring GDP include

The expenditure approach to calculating GDP includes

When we try to measure real GDP and the price level,if we underestimate the growth in real GDP,we will

Unemployment in Canada in the mid-1990s was approximately

In Canada,real GDP is currently calculated using

If a particular measure of real GDP consistently underestimates growth in real GDP,then the rate of inflation as measured by the GDP deflator

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is the real GDP in year 2 using base year 1?

Construction of chain-weighted real GDP employs the technique of a

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is approximately the growth rate of real GDP using base year 1?

Jim's Nursery produces and sells $1100 worth of flowers.Jim uses no intermediate inputs.He pays his workers $700 in wages,pays $100 in taxes and pays $200 in interest on a loan.Jim's profit is

Investment spending is

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is the inflation rate using base year 1?

What is the difference between real and nominal GDP?

GDP is published by Statistics Canada as part of the

Which of the following represents a measurement issue that may help explain the difference in Canadian and U.S.unemployment rates?

When there is rapid inflation,

Additions to the nation's capital stock are brought about through

The components of consumption expenditures include

Introduction

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