Question 1

What has happened to the labour force participation rates in Canada in the last 35 years?

Accepted Answer

A) The male participation rate has increased while the female participation rate has decreased. 
B) The male participation rate has decreased while the female participation rate has increased. 
C) Both male and female participation rates have decreased. 
D) Both male and female participation rates have increased. 
A) The male participation rate has increased while the female participation rate has decreased. 
B) The male participation rate has decreased while the female participation rate has increased. 
C) Both male and female participation rates have decreased. 
D) Both male and female participation rates have increased.

Question 2

Suppose that actual GDP is $42.5 billion and cyclical unemployment is 2.5%.What is the output gap?

Accepted Answer

The answer of Suppose that actual GDP is $42.5 billion...

Question 3

Explain how deflation constrains economic growth.

Accepted Answer

Deflation constrains economic growth bec

Question 4

What is true of Canada's inflation rate from 2008 to 2015?

Accepted Answer

A) It has never been below 2%. 
B) It ranged between 0.3% and 2.9%. 
C) It ranged between 0.3% and 1.0%. 
D) It has never been above 2%. 
A) It has never been below 2%. 
B) It ranged between 0.3% and 2.9%. 
C) It ranged between 0.3% and 1.0%. 
D) It has never been above 2%.

Question 5

Etruria produces only two products: tennis racquets and tennis balls.Data on their production are shown in the following table:
   Based on this data and using 2015 as the base year,answer the following questions:
a)What is the value of nominal GDP in 2016?
b)What is the value of real GDP in 2016?
c)What is the value of real GDP in 2017?
d)What is the value of the GDP deflator in 2016?
e)What is the value of the GDP deflator in 2017?

Accepted Answer

a)$20,580

Question 6

When is the Canadian economy generally considered to be at "full employment"?

Accepted Answer

A) When 12 percent of the labour force is unemployed. 
B) When 90 percent of the total population is employed. 
C) When 90 percent of the labour force is employed. 
D) When approximately 5 percent to 7 percent of the labour force is unemployed. 
E) When everybody who would like a job has one. 
A) When 12 percent of the labour force is unemployed. 
B) When 90 percent of the total population is employed. 
C) When 90 percent of the labour force is employed. 
D) When approximately 5 percent to 7 percent of the labour force is unemployed. 
E) When everybody who would like a job has one.

Question 7

What would be the effect of 100,000 unemployed people becoming discouraged workers?

Accepted Answer

A) The unemployment rate would remain unchanged,and the size of the labour force would decline. 
B) Both the unemployment rate and the size of the labour force would decline. 
C) The unemployment rate would decline,and the size of the labour force would remain unchanged. 
D) Both the unemployment rate and the size of the labour force would rise. 
A) The unemployment rate would remain unchanged,and the size of the labour force would decline. 
B) Both the unemployment rate and the size of the labour force would decline. 
C) The unemployment rate would decline,and the size of the labour force would remain unchanged. 
D) Both the unemployment rate and the size of the labour force would rise.

Question 8

A lender may be hurt by inflation in all of the following situations except one.Which is the exception?

Accepted Answer

A) If the term of the loan is more than one year. 
B) If the lender correctly anticipates inflation and increases the nominal interest rate accordingly. 
C) If the rate of inflation is greater than anticipated by both borrower and lender. 
D) If the rate of inflation is greater than the nominal interest rate. 
A) If the term of the loan is more than one year. 
B) If the lender correctly anticipates inflation and increases the nominal interest rate accordingly. 
C) If the rate of inflation is greater than anticipated by both borrower and lender. 
D) If the rate of inflation is greater than the nominal interest rate.

Question 9

-Refer to the information above to answer this question.What is the value of the GDP deflator in 2016?

Accepted Answer

A) 93.9 
B) 100.0 
C) 104.6 
D) 103.0 
E) 108.2 
A) 93.9 
B) 100.0 
C) 104.6 
D) 103.0 
E) 108.2

Question 10

All of the following,except one,are reasons that someone may not be in the labour force.Which is the exception?

Accepted Answer

A) Retirement. 
B) Financial independence. 
C) Collecting Employment Insurance benefits. 
D) Discouraged worker. 
E) Under 15 years of age. 
A) Retirement. 
B) Financial independence. 
C) Collecting Employment Insurance benefits. 
D) Discouraged worker. 
E) Under 15 years of age.

Question 11

Which of the following does inflation affect?

Accepted Answer

A) Both the level and the distribution of income. 
B) The distribution but not the level of income. 
C) The level but not the distribution of income. 
D) Neither the level nor the distribution of income. 
A) Both the level and the distribution of income. 
B) The distribution but not the level of income. 
C) The level but not the distribution of income. 
D) Neither the level nor the distribution of income.

Question 12

Full employment exists when the economy is experiencing only the natural rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is correct concerning unanticipated inflation?

Accepted Answer

A) It redistributes income and wealth in unpredictable and uneven ways. 
B) It increases the real value of debt. 
C) It increases the purchasing power of the dollar. 
D) It benefits creditors at the expense of debtors. 
E) It hits everyone equally hard. 
A) It redistributes income and wealth in unpredictable and uneven ways. 
B) It increases the real value of debt. 
C) It increases the purchasing power of the dollar. 
D) It benefits creditors at the expense of debtors. 
E) It hits everyone equally hard.

Question 14

Suppose nominal GDP for an economy rose from $125 billion in 2016 to $175 billion in 2017 and that the inflation rate over the same period was 5 percent.
-Refer to the information above to answer this question.By what percentage did real GDP increase between 2016 and 2017?

Accepted Answer

A) 5% 
B) 15% 
C) 25% 
D) 35% 
E) 45% 
A) 5% 
B) 15% 
C) 25% 
D) 35% 
E) 45%

Question 15

The following are selected statistics for a given year in a hypothetical economy:
  
-Refer to the information to answer this question.Which of the following statements is true?

Accepted Answer

A) the GDP gap is $70 billion. 
B) the GDP gap is $21 billion. 
C) The potential GDP is $752.5 billion. 
D) Potential GDP is $770 billion. 
A) the GDP gap is $70 billion. 
B) the GDP gap is $21 billion. 
C) The potential GDP is $752.5 billion. 
D) Potential GDP is $770 billion.

Question 16

Assume Brown is temporarily unemployed because she has voluntarily quit her job and will begin a better job with a new company next week.What is Brown considered to be?

Accepted Answer

A) Cyclically unemployed. 
B) Frictionally unemployed. 
C) Not officially included in the labour force. 
D) Employed. 
E) Structurally unemployed. 
A) Cyclically unemployed. 
B) Frictionally unemployed. 
C) Not officially included in the labour force. 
D) Employed. 
E) Structurally unemployed.

Question 17

-Refer to the information above to answer this question.What is the value of the GDP deflator in 2017?

Accepted Answer

A) 95.0 
B) 100.0 
C) 106.2 
D) 107.7 
E) 106.5 
A) 95.0 
B) 100.0 
C) 106.2 
D) 107.7 
E) 106.5

Question 18

Assume that goods X,Y,and Z constitute a "market basket" used to compute a price index and that 2014 is the base year.
  
-Refer to the information above to answer this question.What is the price index in 2016?

Accepted Answer

A) 22 
B) 120 
C) 115 
D) 100 
A) 22 
B) 120 
C) 115 
D) 100

Question 19

Why is inflation undesirable?

Accepted Answer

A) It redistributes income and wealth in unpredictable and uneven ways. 
B) It always leads to hyperinflation. 
C) It reduces everyone's standard of living. 
D) It always helps the rich at the expense of the poor. 
A) It redistributes income and wealth in unpredictable and uneven ways. 
B) It always leads to hyperinflation. 
C) It reduces everyone's standard of living. 
D) It always helps the rich at the expense of the poor.

Question 20

What is demand-pull inflation caused by?

Accepted Answer

A) Excessive wage demands by labour unions which force up costs of production. 
B) High interest rates demanded by lenders. 
C) Aggregate expenditures exceeding the economy's capacity to produce. 
D) Attempts by firms to obtain increased profits. 
E) The increased demand for imported goods. 
A) Excessive wage demands by labour unions which force up costs of production. 
B) High interest rates demanded by lenders. 
C) Aggregate expenditures exceeding the economy's capacity to produce. 
D) Attempts by firms to obtain increased profits. 
E) The increased demand for imported goods.

What has happened to the labour force participation rates in Canada in the last 35 years?

Suppose that actual GDP is $42.5 billion and cyclical unemployment is 2.5%.What is the output gap?

Explain how deflation constrains economic growth.

What is true of Canada's inflation rate from 2008 to 2015?

When is the Canadian economy generally considered to be at "full employment"?

What would be the effect of 100,000 unemployed people becoming discouraged workers?

A lender may be hurt by inflation in all of the following situations except one.Which is the exception?

-Refer to the information above to answer this question.What is the value of the GDP deflator in 2016?

All of the following,except one,are reasons that someone may not be in the labour force.Which is the exception?

Which of the following does inflation affect?

Full employment exists when the economy is experiencing only the natural rate of unemployment.

Which of the following statements is correct concerning unanticipated inflation?

Suppose nominal GDP for an economy rose from $125 billion in 2016 to $175 billion in 2017 and that the inflation rate over the same period was 5 percent. -Refer to the information above to answer this question.By what percentage did real GDP increase between 2016 and 2017?

The following are selected statistics for a given year in a hypothetical economy: -Refer to the information to answer this question.Which of the following statements is true?

Assume Brown is temporarily unemployed because she has voluntarily quit her job and will begin a better job with a new company next week.What is Brown considered to be?

-Refer to the information above to answer this question.What is the value of the GDP deflator in 2017?

Assume that goods X,Y,and Z constitute a "market basket" used to compute a price index and that 2014 is the base year. -Refer to the information above to answer this question.What is the price index in 2016?

Why is inflation undesirable?

What is demand-pull inflation caused by?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters

Exam 4: Measuring the Economy 2: Unemployment and Inflation

What has happened to the labour force participation rates in Canada in the last 35 years?

Suppose that actual GDP is $42.5 billion and cyclical unemployment is 2.5%.What is the output gap?

Explain how deflation constrains economic growth.

What is true of Canada's inflation rate from 2008 to 2015?

When is the Canadian economy generally considered to be at "full employment"?

What would be the effect of 100,000 unemployed people becoming discouraged workers?

A lender may be hurt by inflation in all of the following situations except one.Which is the exception?

-Refer to the information above to answer this question.What is the value of the GDP deflator in 2016?

All of the following,except one,are reasons that someone may not be in the labour force.Which is the exception?

Which of the following does inflation affect?

Full employment exists when the economy is experiencing only the natural rate of unemployment.

Which of the following statements is correct concerning unanticipated inflation?

Suppose nominal GDP for an economy rose from $125 billion in 2016 to $175 billion in 2017 and that the inflation rate over the same period was 5 percent. -Refer to the information above to answer this question.By what percentage did real GDP increase between 2016 and 2017?

The following are selected statistics for a given year in a hypothetical economy: -Refer to the information to answer this question.Which of the following statements is true?

Assume Brown is temporarily unemployed because she has voluntarily quit her job and will begin a better job with a new company next week.What is Brown considered to be?

-Refer to the information above to answer this question.What is the value of the GDP deflator in 2017?

Assume that goods X,Y,and Z constitute a "market basket" used to compute a price index and that 2014 is the base year. -Refer to the information above to answer this question.What is the price index in 2016?

Why is inflation undesirable?

What is demand-pull inflation caused by?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters