Question 1

One example of a Phillips Curve would be a

Accepted Answer

A) negative relationship between deviations from trend in real and nominal interest rates. 
B) positive relationship between deviations from trend in the level of a money price (the wage rate)prices and the level of aggregate economic activity. 
C) positive relationship between deviations from trend in real and nominal interest rates. 
D) negative relationship between deviations from trend in the level of prices and the level of aggregate economic activity. 
E) positive relationship between deviations from trend in the level of prices and the level of aggregate economic activity. 
A) negative relationship between deviations from trend in real and nominal interest rates. 
B) positive relationship between deviations from trend in the level of a money price (the wage rate)prices and the level of aggregate economic activity. 
C) positive relationship between deviations from trend in real and nominal interest rates. 
D) negative relationship between deviations from trend in the level of prices and the level of aggregate economic activity. 
E) positive relationship between deviations from trend in the level of prices and the level of aggregate economic activity.

Question 2

In the 1961 2018 Canadian data, the inflation rate is

Accepted Answer

A) acyclical. 
B) procyclical. 
C) countercyclical. 
D) indicative of a reverse Phillips curve. 
E) negatively correlated with real GDP. 
A) acyclical. 
B) procyclical. 
C) countercyclical. 
D) indicative of a reverse Phillips curve. 
E) negatively correlated with real GDP.

Question 3

If a macroeconomic variable tends to aid in predicting the future path of real GDP, it is said to be a

Accepted Answer

A) leading variable. 
B) coincident variable. 
C) convenient variable. 
D) correlated variable. 
E) lagging variable. 
A) leading variable. 
B) coincident variable. 
C) convenient variable. 
D) correlated variable. 
E) lagging variable.

Question 4

Forecasting the future path of real GDP by exploiting past statistical relationships

Accepted Answer

A) can be accomplished by the construction and use of an index of coincident variables. 
B) can be accomplished by the construction and use of an index of lagging variables. 
C) can be accomplished by the construction and use of an index of leading variables. 
D) can only be accomplished if there is a perfectly positive correlation. 
E) is never very reliable. 
A) can be accomplished by the construction and use of an index of coincident variables. 
B) can be accomplished by the construction and use of an index of lagging variables. 
C) can be accomplished by the construction and use of an index of leading variables. 
D) can only be accomplished if there is a perfectly positive correlation. 
E) is never very reliable.

Question 5

If the correlation between GDP and y is 0.75, we say y is

Accepted Answer

A) acyclical. 
B) procyclical. 
C) cyclical. 
D) countercyclical. 
E) negatively correlated. 
A) acyclical. 
B) procyclical. 
C) cyclical. 
D) countercyclical. 
E) negatively correlated.

Question 6

In Canada, three important recessions occurred between

Accepted Answer

A) 1978-1979, 1984-1985, and 1988-1989. 
B) 1944-1946, 1951-1952, and 1962-1964. 
C) 1987-1988, 1994-1995, and 2002-2003. 
D) 1974-1975, 1981-1982, and 1990-1992. 
E) 1981-1982, 1996-1997, and 2003-2004. 
A) 1978-1979, 1984-1985, and 1988-1989. 
B) 1944-1946, 1951-1952, and 1962-1964. 
C) 1987-1988, 1994-1995, and 2002-2003. 
D) 1974-1975, 1981-1982, and 1990-1992. 
E) 1981-1982, 1996-1997, and 2003-2004.

Question 7

If real GDP helps to predict the path of a particular macroeconomic variable, it is said to be a

Accepted Answer

A) leading variable. 
B) lagging variable. 
C) correlated variable. 
D) conventional variable. 
E) coincident variable. 
A) leading variable. 
B) lagging variable. 
C) correlated variable. 
D) conventional variable. 
E) coincident variable.

Question 8

Average labour productivity tends to be a(n)

Accepted Answer

A) leading variable. 
B) lagging variable. 
C) coincident variable. 
D) acyclical variable. 
E) variable that is difficult to classify. 
A) leading variable. 
B) lagging variable. 
C) coincident variable. 
D) acyclical variable. 
E) variable that is difficult to classify.

Question 9

For the period 1976 2018, employment in Canada was

Accepted Answer

A) countercyclical and lagging. 
B) coincident. 
C) procyclical and lagging. 
D) procyclical and leading. 
E) countercyclical and leading. 
A) countercyclical and lagging. 
B) coincident. 
C) procyclical and lagging. 
D) procyclical and leading. 
E) countercyclical and leading.

Question 10

Amplitude of the business cycle is

Accepted Answer

A) the size of the maximum deviation from trend. 
B) the size of the minimum deviation from trend. 
C) where the turning points of the business cycle occur. 
D) the amount of employment and real GDP changes during one year. 
E) the amount of volatility in the business during one year. 
A) the size of the maximum deviation from trend. 
B) the size of the minimum deviation from trend. 
C) where the turning points of the business cycle occur. 
D) the amount of employment and real GDP changes during one year. 
E) the amount of volatility in the business during one year.

Question 11

Stock prices tend to lead real GDP because

Accepted Answer

A) stock prices and real GDP are negatively correlated. 
B) stock prices are volatile. 
C) stock prices are part of the Phillips curve relationship. 
D) stock prices increase in a recession. 
E) stock prices reflect market participants' views about the future. 
A) stock prices and real GDP are negatively correlated. 
B) stock prices are volatile. 
C) stock prices are part of the Phillips curve relationship. 
D) stock prices increase in a recession. 
E) stock prices reflect market participants' views about the future.

Question 12

Why is forecasting GDP over the long term so difficult?

Accepted Answer

There are many variables that influence

Question 13

A business cycle peak is a

Accepted Answer

A) minimum deviation from trend in real GDP. 
B) relatively large negative deviation from trend in real GDP. 
C) relatively large positive deviation from trend in real GDP. 
D) small negative deviation from trend in real GDP. 
E) small positive deviation from trend in real GDP. 
A) minimum deviation from trend in real GDP. 
B) relatively large negative deviation from trend in real GDP. 
C) relatively large positive deviation from trend in real GDP. 
D) small negative deviation from trend in real GDP. 
E) small positive deviation from trend in real GDP.

Question 14

Robert Lucas has popularized the notion that with respect to

Accepted Answer

A) deviations from trend real GDP, business cycles over time are all alike. 
B) qualitative behaviour of comovements among series, business cycles are all alike. 
C) severity, business cycles are all alike. 
D) causation, business cycles are all alike. 
E) quantitative behaviour of comovements among series, business cycles are all alike. 
A) deviations from trend real GDP, business cycles over time are all alike. 
B) qualitative behaviour of comovements among series, business cycles are all alike. 
C) severity, business cycles are all alike. 
D) causation, business cycles are all alike. 
E) quantitative behaviour of comovements among series, business cycles are all alike.

Question 15

Comovement can be determined by

Accepted Answer

A) determining whether a series leads or lags. 
B) determining the persistence in a series. 
C) marking peaks and troughs. 
D) economic forecasting models. 
E) examining a scatter plot. 
A) determining whether a series leads or lags. 
B) determining the persistence in a series. 
C) marking peaks and troughs. 
D) economic forecasting models. 
E) examining a scatter plot.

Question 16

Inventory investment tends to be

Accepted Answer

A) leading. 
B) so unchanging that it is hard to classify. 
C) lagging. 
D) procyclical. 
E) coincident. 
A) leading. 
B) so unchanging that it is hard to classify. 
C) lagging. 
D) procyclical. 
E) coincident.

Question 17

If the deviations from trend in a macroeconomic variable is neither procyclical not countercyclical, it is

Accepted Answer

A) coincident. 
B) positively correlated. 
C) a correlation coefficient. 
D) lagging. 
E) acyclical. 
A) coincident. 
B) positively correlated. 
C) a correlation coefficient. 
D) lagging. 
E) acyclical.

Question 18

The defining feature of business cycles is that they are

Accepted Answer

A) fluctuations about trend in real GDP. 
B) fluctuations about trend in the level of employment. 
C) fluctuations about trend in the unemployment rate. 
D) changes in the trend component of real GDP. 
E) fluctuations about trend in standards of living. 
A) fluctuations about trend in real GDP. 
B) fluctuations about trend in the level of employment. 
C) fluctuations about trend in the unemployment rate. 
D) changes in the trend component of real GDP. 
E) fluctuations about trend in standards of living.

Question 19

The real wage is

Accepted Answer

A) acyclical. 
B) higher than real GDP. 
C) countercyclical. 
D) procyclical. 
E) always too low. 
A) acyclical. 
B) higher than real GDP. 
C) countercyclical. 
D) procyclical. 
E) always too low.

Question 20

A business cycle trough is a

Accepted Answer

A) relatively large negative deviation from trend in real GDP. 
B) small negative deviation from trend in real GDP. 
C) relatively large positive deviation from trend in real GDP. 
D) minimum deviation from trend in real GDP. 
E) small positive deviation from trend in real GDP. 
A) relatively large negative deviation from trend in real GDP. 
B) small negative deviation from trend in real GDP. 
C) relatively large positive deviation from trend in real GDP. 
D) minimum deviation from trend in real GDP. 
E) small positive deviation from trend in real GDP.

One example of a Phillips Curve would be a

In the 1961 2018 Canadian data, the inflation rate is

If a macroeconomic variable tends to aid in predicting the future path of real GDP, it is said to be a

Forecasting the future path of real GDP by exploiting past statistical relationships

If the correlation between GDP and y is 0.75, we say y is

In Canada, three important recessions occurred between

If real GDP helps to predict the path of a particular macroeconomic variable, it is said to be a

Average labour productivity tends to be a(n)

For the period 1976 2018, employment in Canada was

Amplitude of the business cycle is

Stock prices tend to lead real GDP because

Why is forecasting GDP over the long term so difficult?

A business cycle peak is a

Robert Lucas has popularized the notion that with respect to

Comovement can be determined by

Inventory investment tends to be

If the deviations from trend in a macroeconomic variable is neither procyclical not countercyclical, it is

The defining feature of business cycles is that they are

The real wage is

A business cycle trough is a

Introduction

Measurement

Consumer and Firm Behavior: the Workleisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: the Consumptionsavings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model With Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models With Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: a Deeper Look

Filters

Exam 3: Business Cycle Measurement

One example of a Phillips Curve would be a

In the 1961 2018 Canadian data, the inflation rate is

If a macroeconomic variable tends to aid in predicting the future path of real GDP, it is said to be a

Forecasting the future path of real GDP by exploiting past statistical relationships

If the correlation between GDP and y is 0.75, we say y is

In Canada, three important recessions occurred between

If real GDP helps to predict the path of a particular macroeconomic variable, it is said to be a

Average labour productivity tends to be a(n)

For the period 1976 2018, employment in Canada was

Amplitude of the business cycle is

Stock prices tend to lead real GDP because

Why is forecasting GDP over the long term so difficult?

A business cycle peak is a

Robert Lucas has popularized the notion that with respect to

Comovement can be determined by

Inventory investment tends to be

If the deviations from trend in a macroeconomic variable is neither procyclical not countercyclical, it is

The defining feature of business cycles is that they are

The real wage is

A business cycle trough is a

Introduction

Measurement

Consumer and Firm Behavior: the Workleisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: the Consumptionsavings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model With Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models With Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: a Deeper Look

Filters