Exam 6: Part A: An Introduction to Macroeconomics

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Which are the richest and poorest countries listed in Global Perspective6.1.How does Canada compare to these two countries?

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What is the difference between financial investment and economic investment?

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If prices are "stuck" and there is an unexpected demand decrease, describe what happens in the economy.

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Why do economists worry about unemployment?

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If prices are "stuck" and there is an unexpected demand increase, describe what happens in the economy.

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Why do economists use the term "sticky" prices rather than "stuck" prices?

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List two concerns with inflation.

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What roles do expectations play in macroeconomics?

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What is the Great Recession? Describe its causes and also its impact on the Canadian Economy.

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What are inventories and what role do they play in an economy with sticky prices?

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Why do economists measure growth in an economy using real GDP rather than nominal GDP?

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