Question 1

Give two examples of macroeconomic variables and microeconomic variables.

Accepted Answer

The income of your father is a microecon

Question 2

Macroeconomic models:

Accepted Answer

A) assume that all wages and prices are sticky. 
B) assume that all wages and prices are flexible. 
C) make different assumptions to explain different aspects of the macroeconomy. 
D) focus primarily on the optimizing behaviour of households and firms. 
A) assume that all wages and prices are sticky. 
B) assume that all wages and prices are flexible. 
C) make different assumptions to explain different aspects of the macroeconomy. 
D) focus primarily on the optimizing behaviour of households and firms.

Question 3

Using a market-clearing model to analyze the labour market is _____ because wages usually change _____.

Accepted Answer

A) realistic; frequently 
B) realistic; infrequently 
C) unrealistic; frequently 
D) unrealistic; infrequently 
A) realistic; frequently 
B) realistic; infrequently 
C) unrealistic; frequently 
D) unrealistic; infrequently

Question 4

Endogenous variables are:

Accepted Answer

A) fixed at the moment they enter the model. 
B) determined within the model. 
C) the inputs of the model. 
D) from outside the model. 
A) fixed at the moment they enter the model. 
B) determined within the model. 
C) the inputs of the model. 
D) from outside the model.

Question 5

During the period between 1900 and 2000, the unemployment rate in Canada was highest in the:

Accepted Answer

A) 1920s. 
B) 1930s. 
C) 1970s. 
D) 1980s. 
A) 1920s. 
B) 1930s. 
C) 1970s. 
D) 1980s.

Question 6

All of the following except _____ are important macroeconomic variables.

Accepted Answer

A) real GDP 
B) the unemployment rate 
C) the marginal rate of substitution 
D) the inflation rate 
A) real GDP 
B) the unemployment rate 
C) the marginal rate of substitution 
D) the inflation rate

Question 7

The ability of macroeconomists to predict the future course of economic events:

Accepted Answer

A) is no better than a meteorologist's ability to predict the next month's weather. 
B) is much better than a meteorologist's ability to predict the next month's weather. 
C) has gotten worse over time. 
D) is less precise than it was in the 1920s. 
A) is no better than a meteorologist's ability to predict the next month's weather. 
B) is much better than a meteorologist's ability to predict the next month's weather. 
C) has gotten worse over time. 
D) is less precise than it was in the 1920s.

Question 8

Macroeconomic models are used to explain how _____ variables influence _____ variables.

Accepted Answer

A) endogenous; exogenous 
B) exogenous; endogenous 
C) microeconomic; macroeconomic 
D) macroeconomic; microeconomic 
A) endogenous; exogenous 
B) exogenous; endogenous 
C) microeconomic; macroeconomic 
D) macroeconomic; microeconomic

Question 9

Macroeconomists are like scientists in that they both:

Accepted Answer

A) design data and conduct controlled experiments to test their theories. 
B) rely on data analyzed from experiments they set up in a laboratory. 
C) are unlimited in their use of controlled experiments. 
D) collect data, develop hypotheses, and analyze the results. 
A) design data and conduct controlled experiments to test their theories. 
B) rely on data analyzed from experiments they set up in a laboratory. 
C) are unlimited in their use of controlled experiments. 
D) collect data, develop hypotheses, and analyze the results.

Question 10

A graph of the unemployment rate in Canada over the twentieth century shows:

Accepted Answer

A) an overall upward trend in the unemployment rate interrupted by a large upturn in the 1930s. 
B) an overall downward trend in the unemployment rate interrupted by a large upturn in the 1930s. 
C) rates of unemployment always greater than zero with substantial variations from year to year. 
D) alternating periods of positive and negative rates of unemployment. 
A) an overall upward trend in the unemployment rate interrupted by a large upturn in the 1930s. 
B) an overall downward trend in the unemployment rate interrupted by a large upturn in the 1930s. 
C) rates of unemployment always greater than zero with substantial variations from year to year. 
D) alternating periods of positive and negative rates of unemployment.

Question 11

Are the terms "market clearing" and "equilibrium" one and the same? Explain.

Accepted Answer

Yes, both terms represent the same notio

Question 12

A severe recession is called a(n):

Accepted Answer

A) depression. 
B) deflation. 
C) exogenous event. 
D) market-clearing assumption. 
A) depression. 
B) deflation. 
C) exogenous event. 
D) market-clearing assumption.

Question 13

Compared with its level in 1900, the real GDP per person in Canada today is about:

Accepted Answer

A) 50 percent higher. 
B) twice as high. 
C) three times as high. 
D) 11 times as high. 
A) 50 percent higher. 
B) twice as high. 
C) three times as high. 
D) 11 times as high.

Question 14

Two striking features of a graph of Canadian real GDP per capita over the twentieth century are the:

Accepted Answer

A) overall upward trend interrupted by a large downturn due to the economic depression in the 1930s. 
B) nearly constant level with a large downturn in the 1930s. 
C) downward trend in the first half of the century followed by the upward trend in the second half. 
D) constant level in the first half of the century followed by the upward trend in the second half. 
A) overall upward trend interrupted by a large downturn due to the economic depression in the 1930s. 
B) nearly constant level with a large downturn in the 1930s. 
C) downward trend in the first half of the century followed by the upward trend in the second half. 
D) constant level in the first half of the century followed by the upward trend in the second half.

Question 15

Which statement below best illustrates the "art," rather than the "science," of macroeconomics?

Accepted Answer

A) Macroeconomic data provide the motivation for new macroeconomic theory. 
B) Macroeconomic relationships can be expressed using symbols and equations. 
C) Macroeconomists must determine which simplifying assumptions clarify our thinking and which ones mislead us. 
D) Graphs and charts can be used to illustrate the history of macroeconomic variables. 
A) Macroeconomic data provide the motivation for new macroeconomic theory. 
B) Macroeconomic relationships can be expressed using symbols and equations. 
C) Macroeconomists must determine which simplifying assumptions clarify our thinking and which ones mislead us. 
D) Graphs and charts can be used to illustrate the history of macroeconomic variables.

Question 16

Do you agree with the statement "macroeconomics rests on the foundation of microeconomics"? Explain.

Accepted Answer

Macroeconomics involves studying the agg

Question 17

Assume that the equation for demand for bread at a small bakery is Qd = 60 - 10Pb + 3Y, where Qd is the quantity of bread demanded in loaves and Y is the average income in the town in thousands of dollars.
a. If the average income in the town is 10, state the equation for Qd in terms of Pb.
b. Draw a graph of the demand curve with Qd on the horizontal axis and Pb on the vertical axis.Label the curve DD.

Accepted Answer

Question 18

The production function for an economy can be expressed as Y = F(K,L), where Y is real GDP, K is the quantity of capital in the economy, and L is the quantity of labour in the economy.
​
a.If F( ) = 100 + 3K + 9L, what is real GDP if the quantity of capital is 200 and the quantity of labour is 500?
b.What is/are the endogenous variable(s) in this model?
c.What is/are the exogenous variable(s) in this model?​

Accepted Answer

a. Y = 100

Question 19

Variables that a model tries to explain are called:

Accepted Answer

A) endogenous. 
B) exogenous. 
C) market clearing. 
D) fixed. 
A) endogenous. 
B) exogenous. 
C) market clearing. 
D) fixed.

Question 20

What is the difference between recession and depression in an economy? Provide an example of depression from the real world that has hit the global economy.

Accepted Answer

When there is a mild fall in the GDP of

Give two examples of macroeconomic variables and microeconomic variables.

Macroeconomic models:

Using a market-clearing model to analyze the labour market is _ because wages usually change _.

Endogenous variables are:

During the period between 1900 and 2000, the unemployment rate in Canada was highest in the:

All of the following except _____ are important macroeconomic variables.

The ability of macroeconomists to predict the future course of economic events:

Macroeconomic models are used to explain how _ variables influence _ variables.

Macroeconomists are like scientists in that they both:

A graph of the unemployment rate in Canada over the twentieth century shows:

Are the terms "market clearing" and "equilibrium" one and the same? Explain.

A severe recession is called a(n):

Compared with its level in 1900, the real GDP per person in Canada today is about:

Two striking features of a graph of Canadian real GDP per capita over the twentieth century are the:

Which statement below best illustrates the "art," rather than the "science," of macroeconomics?

Do you agree with the statement "macroeconomics rests on the foundation of microeconomics"? Explain.

Variables that a model tries to explain are called:

What is the difference between recession and depression in an economy? Provide an example of depression from the real world that has hit the global economy.

The Data of Microeconomics

National Income: Where It Comes From and Where It Goes

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labour Market

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Islm Model

Aggregate Demand Ii: Applying the Islm Model

The Open Economy Revisited: the Mundellfleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

The Microfoundations of Consumption and Investment

Filters

Exam 1: The Science of Macroeconomics

Give two examples of macroeconomic variables and microeconomic variables.

Macroeconomic models:

Using a market-clearing model to analyze the labour market is _____ because wages usually change _____.

Endogenous variables are:

During the period between 1900 and 2000, the unemployment rate in Canada was highest in the:

All of the following except _____ are important macroeconomic variables.

The ability of macroeconomists to predict the future course of economic events:

Macroeconomic models are used to explain how _____ variables influence _____ variables.

Macroeconomists are like scientists in that they both:

A graph of the unemployment rate in Canada over the twentieth century shows:

Are the terms "market clearing" and "equilibrium" one and the same? Explain.

A severe recession is called a(n):

Compared with its level in 1900, the real GDP per person in Canada today is about:

Two striking features of a graph of Canadian real GDP per capita over the twentieth century are the:

Which statement below best illustrates the "art," rather than the "science," of macroeconomics?

Do you agree with the statement "macroeconomics rests on the foundation of microeconomics"? Explain.

Variables that a model tries to explain are called:

What is the difference between recession and depression in an economy? Provide an example of depression from the real world that has hit the global economy.

The Data of Microeconomics

National Income: Where It Comes From and Where It Goes

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labour Market

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Islm Model

Aggregate Demand Ii: Applying the Islm Model

The Open Economy Revisited: the Mundellfleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

The Microfoundations of Consumption and Investment

Filters

Using a market-clearing model to analyze the labour market is _ because wages usually change _.

Macroeconomic models are used to explain how _ variables influence _ variables.