Question 1

How is the GDP deflator calculated?

Accepted Answer

A) Nominal GDP minus the price level and multiplied by 100. 
B) Nominal GDP divided by the price level and multiplied by 100. 
C) Real GDP divided by nominal GDP and multiplied by 100. 
D) Nominal GDP divided by real GDP and multiplied by 100. 
A) Nominal GDP minus the price level and multiplied by 100. 
B) Nominal GDP divided by the price level and multiplied by 100. 
C) Real GDP divided by nominal GDP and multiplied by 100. 
D) Nominal GDP divided by real GDP and multiplied by 100.

Question 2

What can we infer if the actual Canadian unemployment rate is above 10%?

Accepted Answer

A) That the economy must be on an upswing. 
B) That potential GDP exceeds actual GDP. 
C) That actual GDP exceeds potential GDP. 
D) That actual GDP is equal to potential GDP. 
E) That actual GDP is greater than real GDP. 
A) That the economy must be on an upswing. 
B) That potential GDP exceeds actual GDP. 
C) That actual GDP exceeds potential GDP. 
D) That actual GDP is equal to potential GDP. 
E) That actual GDP is greater than real GDP.

Question 3

What percentage of Canada's labour force was unemployed in 2015?

Accepted Answer

A) 1.1% 
B) 4.0% 
C) 5.2% 
D) 6.9% 
E) 11.6% 
A) 1.1% 
B) 4.0% 
C) 5.2% 
D) 6.9% 
E) 11.6%

Question 4

What is the natural rate of unemployment? What are the determinants of the natural rate of unemployment?

Accepted Answer

The natural rate of unemployment is the

Question 5

Give two examples of the redistributive costs of inflation.

Accepted Answer

One example of a redistributive cost of

Question 6

Which of the following people would be regarded as employed according to the Statistics Cananda definition?

Accepted Answer

A) A homemaker who works 14 hours a day taking care of the home and family. 
B) A homemaker who does 5 hours of volunteer work each week at the local library. 
C) A homemaker who works for 5 hours a week at the minimum wage for the local convenience store. 
D) A steelworker,laid off a year ago,who has given up looking for a job. 
A) A homemaker who works 14 hours a day taking care of the home and family. 
B) A homemaker who does 5 hours of volunteer work each week at the local library. 
C) A homemaker who works for 5 hours a week at the minimum wage for the local convenience store. 
D) A steelworker,laid off a year ago,who has given up looking for a job.

Question 7

What is the real rate of interest?

Accepted Answer

A) It is the interest rate charged on long-term government bonds. 
B) It is the interest rate that can be earned on gilt-edged securities. 
C) It is the interest rate which banks charge their best customers. 
D) It is the interest rate measured in constant dollars. 
A) It is the interest rate charged on long-term government bonds. 
B) It is the interest rate that can be earned on gilt-edged securities. 
C) It is the interest rate which banks charge their best customers. 
D) It is the interest rate measured in constant dollars.

Question 8

If the number of job vacancies in an economy is equal to the number of people unemployed,then cyclical unemployment is zero.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements concerning discouraged workers in the economy is true?

Accepted Answer

A) They increase the size of the labour force,but do not affect the unemployment rate. 
B) They reduce the size of the labour force,but do not affect the unemployment rate. 
C) They may cause the official unemployment rate to understate the real amount of unemployment. 
D) They may cause the official unemployment rate to overstate the real amount of unemployment. 
E) They do not affect the size of the labour force,but do cause the unemployment rate to be higher than it would otherwise be. 
A) They increase the size of the labour force,but do not affect the unemployment rate. 
B) They reduce the size of the labour force,but do not affect the unemployment rate. 
C) They may cause the official unemployment rate to understate the real amount of unemployment. 
D) They may cause the official unemployment rate to overstate the real amount of unemployment. 
E) They do not affect the size of the labour force,but do cause the unemployment rate to be higher than it would otherwise be.

Question 10

-Refer to the above information to answer this question.What is the inflation rate in 2016?

Accepted Answer

A) 7.3% 
B) 8.0% 
C) 9.5% 
D) 18.0% 
A) 7.3% 
B) 8.0% 
C) 9.5% 
D) 18.0%

Question 11

If the inflation rate unexpectedly rises from 1% to 6%,would each of the following gain or lose as a result?
a)Lars,who borrowed $50,000 last year repayable over the next 5 years at 6 percent interest.
b)Jan,who lent Lars the $50,000.
c)Arash,an elderly man living on a fixed company pension.
d)Ingrid,who receives a fixed 10 percent interest on her savings every year.
e)Svend,the owner of an electronics firm who signed an agreement with his employees paying annual wage increases of 5 percent.

Accepted Answer

a)Lars gains
b)Jan l

Question 12

Truscan's nominal GDP rose by 7% between 2016 and 2017.If its inflation rate was 2%,by how much did its real GDP increase?

Accepted Answer

A) 1.4% 
B) 5% 
C) 9% 
D) 14% 
A) 1.4% 
B) 5% 
C) 9% 
D) 14%

Question 13

Assume that in 2016,prices increased by 2% over the previous year and the nominal rate of interest was 8%.In 2017,prices increased by 5%.If the real rate of interest is to remain at the same level in 2017 as it was in 2016,then what should the nominal interest rate in 2017 be?

Accepted Answer

A) 0% 
B) 11% 
C) 13% 
D) 14% 
E) 20% 
A) 0% 
B) 11% 
C) 13% 
D) 14% 
E) 20%

Question 14

What is the GDP Deflator?

Accepted Answer

A) A measure of the price level of goods included in the GDP. 
B) It is another name for the Consumer Price Index. 
C) It is equal to nominal GDP minus the price level. 
D) It is equal to nominal GDP minus the change in the price level. 
E) It is equal to nominal GDP divided by the price level. 
A) A measure of the price level of goods included in the GDP. 
B) It is another name for the Consumer Price Index. 
C) It is equal to nominal GDP minus the price level. 
D) It is equal to nominal GDP minus the change in the price level. 
E) It is equal to nominal GDP divided by the price level.

Question 15

The price of a movie ticket in 1959 was $2,while in 2017 it was $10.The price index in 1959 was 30 and in 2017 it was 116.4 (2002 = 100).What are the 1959 and 2017 ticket prices respectively measured in 2002 prices?

Accepted Answer

A) $5.40 and $5.40 
B) $2 and $9 
C) $1.81 and $30 
D) $6.67 and $8.59 
A) $5.40 and $5.40 
B) $2 and $9 
C) $1.81 and $30 
D) $6.67 and $8.59

Question 16

What is meant by structural unemployment?

Accepted Answer

A) Unemployment that is caused by the fact that it takes time for people to find their first job or to move between jobs. 
B) Unemployment which results from structural changes in an economy's industries. 
C) Unemployment that occurs as a result of the recessionary phase of the business cycle. 
D) Unemployment that occurs because people do not think that there are any jobs available. 
A) Unemployment that is caused by the fact that it takes time for people to find their first job or to move between jobs. 
B) Unemployment which results from structural changes in an economy's industries. 
C) Unemployment that occurs as a result of the recessionary phase of the business cycle. 
D) Unemployment that occurs because people do not think that there are any jobs available.

Question 17

Explain how the official unemployment rate might be understated?

Accepted Answer

There are two reasons why the official u

Question 18

Why are economists concerned about deflation?

Accepted Answer

A) Because it is associated with high rates of unemployment. 
B) Because it could lead to very rapid and uncontrollable rates of growth. 
C) Because it could drive the nominal interest rate to very high levels. 
D) Because it could cause credit markets to freeze up and in turn cause economic growth to stop. 
A) Because it is associated with high rates of unemployment. 
B) Because it could lead to very rapid and uncontrollable rates of growth. 
C) Because it could drive the nominal interest rate to very high levels. 
D) Because it could cause credit markets to freeze up and in turn cause economic growth to stop.

Question 19

Distinguish between frictional and cyclical unemployment.

Accepted Answer

Frictional unemployment results from peo

Question 20

Which of the following relates to cyclical unemployment?

Accepted Answer

A) It is associated with an inflationary gap. 
B) It is associated with the level of performance of the economy. 
C) It is above zero when the economy is at the natural rate of unemployment. 
D) It could also be called seasonal unemployment. 
A) It is associated with an inflationary gap. 
B) It is associated with the level of performance of the economy. 
C) It is above zero when the economy is at the natural rate of unemployment. 
D) It could also be called seasonal unemployment.

How is the GDP deflator calculated?

What can we infer if the actual Canadian unemployment rate is above 10%?

What percentage of Canada's labour force was unemployed in 2015?

What is the natural rate of unemployment? What are the determinants of the natural rate of unemployment?

Give two examples of the redistributive costs of inflation.

Which of the following people would be regarded as employed according to the Statistics Cananda definition?

What is the real rate of interest?

If the number of job vacancies in an economy is equal to the number of people unemployed,then cyclical unemployment is zero.

Which of the following statements concerning discouraged workers in the economy is true?

-Refer to the above information to answer this question.What is the inflation rate in 2016?

Truscan's nominal GDP rose by 7% between 2016 and 2017.If its inflation rate was 2%,by how much did its real GDP increase?

Assume that in 2016,prices increased by 2% over the previous year and the nominal rate of interest was 8%.In 2017,prices increased by 5%.If the real rate of interest is to remain at the same level in 2017 as it was in 2016,then what should the nominal interest rate in 2017 be?

What is the GDP Deflator?

The price of a movie ticket in 1959 was $2,while in 2017 it was $10.The price index in 1959 was 30 and in 2017 it was 116.4 (2002 = 100).What are the 1959 and 2017 ticket prices respectively measured in 2002 prices?

What is meant by structural unemployment?

Explain how the official unemployment rate might be understated?

Why are economists concerned about deflation?

Distinguish between frictional and cyclical unemployment.

Which of the following relates to cyclical unemployment?

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

How is the GDP deflator calculated?

What can we infer if the actual Canadian unemployment rate is above 10%?

What percentage of Canada's labour force was unemployed in 2015?

What is the natural rate of unemployment? What are the determinants of the natural rate of unemployment?

Give two examples of the redistributive costs of inflation.

Which of the following people would be regarded as employed according to the Statistics Cananda definition?

What is the real rate of interest?

If the number of job vacancies in an economy is equal to the number of people unemployed,then cyclical unemployment is zero.

Which of the following statements concerning discouraged workers in the economy is true?

-Refer to the above information to answer this question.What is the inflation rate in 2016?

Truscan's nominal GDP rose by 7% between 2016 and 2017.If its inflation rate was 2%,by how much did its real GDP increase?

Assume that in 2016,prices increased by 2% over the previous year and the nominal rate of interest was 8%.In 2017,prices increased by 5%.If the real rate of interest is to remain at the same level in 2017 as it was in 2016,then what should the nominal interest rate in 2017 be?

What is the GDP Deflator?

The price of a movie ticket in 1959 was $2,while in 2017 it was $10.The price index in 1959 was 30 and in 2017 it was 116.4 (2002 = 100).What are the 1959 and 2017 ticket prices respectively measured in 2002 prices?

What is meant by structural unemployment?

Explain how the official unemployment rate might be understated?

Why are economists concerned about deflation?

Distinguish between frictional and cyclical unemployment.

Which of the following relates to cyclical unemployment?

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