Exam 19: What Macroeconomics Is All About

Suppose that in 2016 Canadaʹs automobile manufacturers produced 2 million cars priced at $20 000 each. And in 2017 they produced 1 million cars priced at $40 000 each. Ceteris paribus, the change in nominal national income is

Suppose Canadaʹs exchange rate with the euro rises from 1.2 to 1.4. This rise indicates an) of the Canadian dollar, which means it takes Canadian dollars to purchase one euro.

If a countryʹs population is 15 million people, and 1 million of those are unemployed, the countryʹs unemployment rate is

On a graph showing real national income on the vertical axis and time on the horizontal axis, the trend -line would probably be a good approximation of the

Economists expect some unemployment to exist even at times of ʺfull employmentʺ for, among others, the following reasons: 1) actual GDP is rarely equal to potential GDP; 2) as the economy changes, the structure of the existing labour force is not the same as the structure of labour demand; 3) people entering the labour force typically take some time to find a job.

Suppose the city of Calgary has a population of 1 million, a labour force of 575 000, and employment equal to 545 000. We can conclude that for legal and various other reasons people are excluded from the labour force.

Real GDP measures

Inflation, the rate of change of average prices in the economy, generally

Which of the following is the best example of frictional unemployment?

In macroeconomics, the ʺoutput gapʺ is the difference between

Suppose the Bank of Montreal wants a 4% real rate of return on all its loans, and anticipates an annual inflation rate of 6%. It should therefore lend its money at a nominal interest rate of

Macroeconomics is mainly concerned with the study of

The Canadian exchange rate is defined to be the

The real rate of interest is equal to the nominal interest rate

The table below provides macroeconomic data for a hypothetical economy. Dollar amounts are all in constant-dollar terms. TABLE 19-1 -Refer to Table 19-1. In the year 2012, it is probably the case that workers are and factories are )

Suppose a country has an unemployment rate of 20%. If we know that the population is 38 million and the labour force is 25 million, then the number of people unemployed is

Suppose Canadaʹs exchange rate with the U.S. dollar falls from 1.21 to 1.13. This fall indicates an) of the Canadian dollar, which means it takes Canadian dollars to purchase one U.S. dollar.

Suppose that a countryʹs population is 30 million and it has a labour force of 15 million people. If 14.5 million people are employed, the countryʹs unemployment rate is

Consider the situations of a lender of money and a borrower of money. Which of the following situations is Least burdensome for the borrower?

Suppose that at the end of a given year there has been unanticipated inflation of 4%. Who is better off at the end of the year?