Question 1

What would be the effect of 50,000 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 size 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 size would rise.

Question 2

Which of the following categories would a thirty-five-year-old,healthy male who does not work because he has inherited a large fortune most likely fall into?

Accepted Answer

A) In the labour force. 
B) In the working age population. 
C) Employed. 
D) Unemployed. 
A) In the labour force. 
B) In the working age population. 
C) Employed. 
D) Unemployed.

Question 3

Assume that between 2005 and 2015 the price level doubled.What is the approximate average annual rate of inflation over this ten-year period?

Accepted Answer

A) 10% 
B) 7% 
C) 5% 
D) 2% 
E) 1% 
A) 10% 
B) 7% 
C) 5% 
D) 2% 
E) 1%

Question 4

Nominal output has increased from $600 billion to $720 billion.The GDP deflator has risen by 10%.By what dollar amount has real output risen?

Accepted Answer

Use the formula real output =

Question 5

For which of the following factors of production can the concept of unemployment be applied?

Accepted Answer

A) Labour 
B) Land and labour 
C) Capital and labour 
D) Land and capital 
E) Land,labour and capital 
A) Labour 
B) Land and labour 
C) Capital and labour 
D) Land and capital 
E) Land,labour and capital

Question 6

What type of unemployment is associated with recessions?

Accepted Answer

A) Seasonal. 
B) Structural. 
C) Cyclical. 
D) Natural. 
E) Search. 
A) Seasonal. 
B) Structural. 
C) Cyclical. 
D) Natural. 
E) Search.

Question 7

Which of the following is true of official unemployment statistics?

Accepted Answer

A) They tend to understate the real amount of unemployment because individuals receiving unemployment benefits are counted as employed. 
B) They tend to understate the real amount of unemployment because "discouraged workers" are not counted as unemployed. 
C) They include both frictional and structural unemployment,but not cyclical unemployment. 
D) They tend to overstate the real amount of unemployment because workers who are involuntarily working part-time are counted as being employed. 
E) They tend to understate the real amount of unemployment because many people in the underground economy declare themselves unemployed whereas they are actually fully employed. 
A) They tend to understate the real amount of unemployment because individuals receiving unemployment benefits are counted as employed. 
B) They tend to understate the real amount of unemployment because "discouraged workers" are not counted as unemployed. 
C) They include both frictional and structural unemployment,but not cyclical unemployment. 
D) They tend to overstate the real amount of unemployment because workers who are involuntarily working part-time are counted as being employed. 
E) They tend to understate the real amount of unemployment because many people in the underground economy declare themselves unemployed whereas they are actually fully employed.

Question 8

Which of the following statements concerning the natural rate of unemployment is incorrect?

Accepted Answer

A) It is made up of both frictional and structural unemployment. 
B) It is the rate of unemployment at full employment. 
C) It is when the total number of job vacancies equals the number of people unemployed. 
D) It is probably about 5% to 7% in Canada today. 
E) It is when both frictional and structural unemployment is zero. 
A) It is made up of both frictional and structural unemployment. 
B) It is the rate of unemployment at full employment. 
C) It is when the total number of job vacancies equals the number of people unemployed. 
D) It is probably about 5% to 7% in Canada today. 
E) It is when both frictional and structural unemployment is zero.

Question 9

Both male and female participation rates in Canada have been steadily rising for the past 20 years.

Accepted Answer

A) True 
 B)False

Question 10

What is Okun's Law?

Accepted Answer

A) It measures the trade-off between the rate of inflation and the rate of unemployment. 
B) It indicates the number of years it will take for any amount to double if compounded at a constant rate. 
C) It quantifies the relationship between nominal and real incomes. 
D) It shows the relationship between cyclical unemployment and the size of the GDP gap. 
E) It states that supply creates its own demand. 
A) It measures the trade-off between the rate of inflation and the rate of unemployment. 
B) It indicates the number of years it will take for any amount to double if compounded at a constant rate. 
C) It quantifies the relationship between nominal and real incomes. 
D) It shows the relationship between cyclical unemployment and the size of the GDP gap. 
E) It states that supply creates its own demand.

Question 11

If the annual inflation rate is 7 percent,then the price level will double in ten years.

Accepted Answer

A) True 
 B)False

Question 12

Suppose that Jim's income in year 1 was $45,000.Over the next four years,his income increases by 5 percent per year.At the same time,the economy experiences an inflation rate of 2 percent per year.At the end of four years,what will be Jim's real income?

Accepted Answer

$45,000 @#LAT-DLM& 3% = 46,350 @#LAT-DLM& 3% = 47,741 @#LAT-DLM& 3% =

Question 13

The real interest rate is equal to the nominal interest rate plus the expected inflation rate.

Accepted Answer

A) True 
 B)False

Question 14

-Refer to the information above to answer this question.What is the value of the GDP deflator in 2015?

Accepted Answer

A) 52.2 
B) 61.8 
C) 84.4 
D) 100 
E) 118.0 
A) 52.2 
B) 61.8 
C) 84.4 
D) 100 
E) 118.0

Question 15

"If there is an increase in current market prices there will be an increase in nominal GDP." Evaluate this statement

Accepted Answer

If real GDP remains the same,yes.However

Question 16

How does StatsCan define a recession?

Accepted Answer

A) A decline in real GDP during one quarter. 
B) A decline in real GDP over two consecutive quarters. 
C) An unemployment rate in excess of 8% along with a decline in GDP. 
D) A decline in nominal GDP over one quarter. 
E) An unemployment rate in excess of 8%. 
A) A decline in real GDP during one quarter. 
B) A decline in real GDP over two consecutive quarters. 
C) An unemployment rate in excess of 8% along with a decline in GDP. 
D) A decline in nominal GDP over one quarter. 
E) An unemployment rate in excess of 8%.

Question 17

According to most economists,presently,what is the natural rate of unemployment in Canada?

Accepted Answer

A) 1% - 2%. 
B) 2% - 3%. 
C) 5% - 7%. 
D) 10%. 
E) 12% - 15%. 
A) 1% - 2%. 
B) 2% - 3%. 
C) 5% - 7%. 
D) 10%. 
E) 12% - 15%.

Question 18

What is the natural rate of unemployment?

Accepted Answer

A) The unemployment rate experienced at the depth of a depression. 
B) The full-employment unemployment rate. 
C) The unemployment caused by frictional unemployment only. 
D) The unemployment caused by structural unemployment only. 
E) The amount of cyclical unemployment in an economy when frictional and structural unemployment are both zero. 
A) The unemployment rate experienced at the depth of a depression. 
B) The full-employment unemployment rate. 
C) The unemployment caused by frictional unemployment only. 
D) The unemployment caused by structural unemployment only. 
E) The amount of cyclical unemployment in an economy when frictional and structural unemployment are both zero.

Question 19

What would happen to the unemployment rate if it was not seasonally adjusted?

Accepted Answer

A) It would not differ from seasonally adjusted rates. 
B) It would move in direct proportion to the business cycle. 
C) Nothing since it is the normal way StatsCan reports unemployment. 
D) It would normally rise in the winter and fall in the summer. 
A) It would not differ from seasonally adjusted rates. 
B) It would move in direct proportion to the business cycle. 
C) Nothing since it is the normal way StatsCan reports unemployment. 
D) It would normally rise in the winter and fall in the summer.

Question 20

Frictional unemployment is likely to be greatest in sunset industries.

Accepted Answer

A) True 
 B)False

What would be the effect of 50,000 unemployed people becoming discouraged workers?

Which of the following categories would a thirty-five-year-old,healthy male who does not work because he has inherited a large fortune most likely fall into?

Assume that between 2005 and 2015 the price level doubled.What is the approximate average annual rate of inflation over this ten-year period?

Nominal output has increased from $600 billion to $720 billion.The GDP deflator has risen by 10%.By what dollar amount has real output risen?

For which of the following factors of production can the concept of unemployment be applied?

What type of unemployment is associated with recessions?

Which of the following is true of official unemployment statistics?

Which of the following statements concerning the natural rate of unemployment is incorrect?

Both male and female participation rates in Canada have been steadily rising for the past 20 years.

What is Okun's Law?

If the annual inflation rate is 7 percent,then the price level will double in ten years.

Suppose that Jim's income in year 1 was $45,000.Over the next four years,his income increases by 5 percent per year.At the same time,the economy experiences an inflation rate of 2 percent per year.At the end of four years,what will be Jim's real income?

The real interest rate is equal to the nominal interest rate plus the expected inflation rate.

-Refer to the information above to answer this question.What is the value of the GDP deflator in 2015?

"If there is an increase in current market prices there will be an increase in nominal GDP." Evaluate this statement

How does StatsCan define a recession?

According to most economists,presently,what is the natural rate of unemployment in Canada?

What is the natural rate of unemployment?

What would happen to the unemployment rate if it was not seasonally adjusted?

Frictional unemployment is likely to be greatest in sunset industries.

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 would be the effect of 50,000 unemployed people becoming discouraged workers?

Which of the following categories would a thirty-five-year-old,healthy male who does not work because he has inherited a large fortune most likely fall into?

Assume that between 2005 and 2015 the price level doubled.What is the approximate average annual rate of inflation over this ten-year period?

Nominal output has increased from $600 billion to $720 billion.The GDP deflator has risen by 10%.By what dollar amount has real output risen?

For which of the following factors of production can the concept of unemployment be applied?

What type of unemployment is associated with recessions?

Which of the following is true of official unemployment statistics?

Which of the following statements concerning the natural rate of unemployment is incorrect?

Both male and female participation rates in Canada have been steadily rising for the past 20 years.

What is Okun's Law?

If the annual inflation rate is 7 percent,then the price level will double in ten years.

Suppose that Jim's income in year 1 was $45,000.Over the next four years,his income increases by 5 percent per year.At the same time,the economy experiences an inflation rate of 2 percent per year.At the end of four years,what will be Jim's real income?

The real interest rate is equal to the nominal interest rate plus the expected inflation rate.

-Refer to the information above to answer this question.What is the value of the GDP deflator in 2015?

"If there is an increase in current market prices there will be an increase in nominal GDP." Evaluate this statement

How does StatsCan define a recession?

According to most economists,presently,what is the natural rate of unemployment in Canada?

What is the natural rate of unemployment?

What would happen to the unemployment rate if it was not seasonally adjusted?

Frictional unemployment is likely to be greatest in sunset industries.

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