Question 1

Which of the following is a feature of Canadian business cycles?

Accepted Answer

A) They are difficult to measure. 
B) The time series of deviations from trend in real GDP is quite smooth. 
C) There is no regularity to the amplitude of fluctuations in GDP below trend. 
D) The time series of deviations from trend in real GDP is quite choppy. 
E) There is no regularity to the frequency of fluctuations in GDP below trend. 
A) They are difficult to measure. 
B) The time series of deviations from trend in real GDP is quite smooth. 
C) There is no regularity to the amplitude of fluctuations in GDP below trend. 
D) The time series of deviations from trend in real GDP is quite choppy. 
E) There is no regularity to the frequency of fluctuations in GDP below trend.

Question 2

Average labour productivity

Accepted Answer

A) cannot be measured. 
B) is measured as total output divided by the number of unemployed workers. 
C) is output minus the capital stock. 
D) is measured as the ratio of aggregate output to total employment. 
E) is the ratio of employment to aggregate output. 
A) cannot be measured. 
B) is measured as total output divided by the number of unemployed workers. 
C) is output minus the capital stock. 
D) is measured as the ratio of aggregate output to total employment. 
E) is the ratio of employment to aggregate output.

Question 3

Comovement can be discerned by

Accepted Answer

A) looking at the composite index of business leading indicators. 
B) determining if it is a lagging or leading indicator. 
C) calculating the correlation coefficient between the percentage deviations from trend. 
D) whether it is a procyclical or countercyclical variable. 
E) calculating the percentage deviations from trend in real GDP. 
A) looking at the composite index of business leading indicators. 
B) determining if it is a lagging or leading indicator. 
C) calculating the correlation coefficient between the percentage deviations from trend. 
D) whether it is a procyclical or countercyclical variable. 
E) calculating the percentage deviations from trend in real GDP.

Question 4

Real investment tends to be

Accepted Answer

A) procyclical and less variable than real GDP. 
B) countercyclical and more variable than real GDP. 
C) countercyclical and less variable than real GDP. 
D) procyclical and more variable than real GDP. 
E) acyclical with real GDP. 
A) procyclical and less variable than real GDP. 
B) countercyclical and more variable than real GDP. 
C) countercyclical and less variable than real GDP. 
D) procyclical and more variable than real GDP. 
E) acyclical with real GDP.

Question 5

For the period 1961 2018 in Canada, the price level

Accepted Answer

A) was coincident with changes in real GDP. 
B) was uncorrelated with real GDP. 
C) led changes in real GDP. 
D) lagged changes in real GDP. 
E) was acyclical. 
A) was coincident with changes in real GDP. 
B) was uncorrelated with real GDP. 
C) led changes in real GDP. 
D) lagged changes in real GDP. 
E) was acyclical.

Question 6

If we plotted the level of good cholesterol in the blood against the incidence of heart disease, we would observe a(n)

Accepted Answer

A) uncertain result. 
B) time series. 
C) negative correlation. 
D) zero correlation. 
E) positive correlation. 
A) uncertain result. 
B) time series. 
C) negative correlation. 
D) zero correlation. 
E) positive correlation.

Question 7

Which of the following is a feature of Canadian business cycles?

Accepted Answer

A) There is regularity in fluctuations in real GDP about trend. 
B) There is no regularity in the amplitude of fluctuations in real GDP about trend. 
C) There is regularity in the amplitude of fluctuations in real GDP about trend. 
D) They are not persistent. 
E) The time series of deviations from trend in real GDP is quite smooth. 
A) There is regularity in fluctuations in real GDP about trend. 
B) There is no regularity in the amplitude of fluctuations in real GDP about trend. 
C) There is regularity in the amplitude of fluctuations in real GDP about trend. 
D) They are not persistent. 
E) The time series of deviations from trend in real GDP is quite smooth.

Question 8

If we plotted cigarettes smoked per year against the incidence of lung cancer, we would observe a(n)

Accepted Answer

A) negative correlation. 
B) zero correlation. 
C) positive correlation. 
D) time series. 
E) uncertain result. 
A) negative correlation. 
B) zero correlation. 
C) positive correlation. 
D) time series. 
E) uncertain result.

Question 9

If the correlation coefficient between x and y is equal to 1, we say that x and y are

Accepted Answer

A) perfectly negatively correlated. 
B) leading variables. 
C) perfectly positively correlated. 
D) acyclical. 
E) lagging variables. 
A) perfectly negatively correlated. 
B) leading variables. 
C) perfectly positively correlated. 
D) acyclical. 
E) lagging variables.

Question 10

Real consumption tends to be

Accepted Answer

A) countercyclical and less variable than real GDP. 
B) countercyclical and more variable than real GDP. 
C) acyclical with real GDP. 
D) procyclical and less variable than real GDP. 
E) procyclical and more variable than real GDP. 
A) countercyclical and less variable than real GDP. 
B) countercyclical and more variable than real GDP. 
C) acyclical with real GDP. 
D) procyclical and less variable than real GDP. 
E) procyclical and more variable than real GDP.

Question 11

Average labour productivity tends to be

Accepted Answer

A) countercyclical and more variable than real GDP. 
B) acyclical with real GDP. 
C) procyclical and less variable than real GDP. 
D) procyclical and more variable than real GDP. 
E) countercyclical and less variable than real GDP. 
A) countercyclical and more variable than real GDP. 
B) acyclical with real GDP. 
C) procyclical and less variable than real GDP. 
D) procyclical and more variable than real GDP. 
E) countercyclical and less variable than real GDP.

Question 12

Positive correlation between x and y implies that

Accepted Answer

A) when x is high, y is high. 
B) the trend is unpredictable. 
C) when x is high, y is low. 
D) x and y are positively unrelated. 
E) when x is zero, y is positive. 
A) when x is high, y is high. 
B) the trend is unpredictable. 
C) when x is high, y is low. 
D) x and y are positively unrelated. 
E) when x is zero, y is positive.

Question 13

Real wages are defined as

Accepted Answer

A) the average money wage for all workers. 
B) income after adjusting for productivity. 
C) the purchasing power of the wage earned per hour worked. 
D) inflation-adjusted wages. 
E) nominal wages plus the expected rate of inflation. 
A) the average money wage for all workers. 
B) income after adjusting for productivity. 
C) the purchasing power of the wage earned per hour worked. 
D) inflation-adjusted wages. 
E) nominal wages plus the expected rate of inflation.

Question 14

The defining feature of business cycles is that they

Accepted Answer

A) are inherently bad. 
B) measure prospects for future growth in the economy. 
C) represent the underlying trend of real GDP in the economy. 
D) are fluctuations about trend in real GDP. 
E) measure standards of living and productivity. 
A) are inherently bad. 
B) measure prospects for future growth in the economy. 
C) represent the underlying trend of real GDP in the economy. 
D) are fluctuations about trend in real GDP. 
E) measure standards of living and productivity.

Question 15

Phillips curves are

Accepted Answer

A) hard to find in the data and stable. 
B) easy to find in the data, and stable. 
C) hard to find in the data and unstable. 
D) easy to find in the data and unstable. 
E) obvious from the data. 
A) hard to find in the data and stable. 
B) easy to find in the data, and stable. 
C) hard to find in the data and unstable. 
D) easy to find in the data and unstable. 
E) obvious from the data.

Question 16

Average labour productivity

Accepted Answer

A) is more variable than real GDP. 
B) is procyclical. 
C) is about as variable as investment. 
D) is a leading economic variable. 
E) is a lagging economic variable. 
A) is more variable than real GDP. 
B) is procyclical. 
C) is about as variable as investment. 
D) is a leading economic variable. 
E) is a lagging economic variable.

Question 17

A measure of the degree of correlation between two variables is a

Accepted Answer

A) correlation statistic. 
B) financial correlation. 
C) correlation coefficient. 
D) correlation variable. 
E) statistical correlation. 
A) correlation statistic. 
B) financial correlation. 
C) correlation coefficient. 
D) correlation variable. 
E) statistical correlation.

Question 18

Comovement relates to

Accepted Answer

A) macroeconomic variables fluctuating together in patterns that exhibit strong regularities. 
B) the movement of business cycles over time. 
C) the relationship between real and nominal interest rates. 
D) the movement between price levels and real GDP over time. 
E) the frequency of the business cycles. 
A) macroeconomic variables fluctuating together in patterns that exhibit strong regularities. 
B) the movement of business cycles over time. 
C) the relationship between real and nominal interest rates. 
D) the movement between price levels and real GDP over time. 
E) the frequency of the business cycles.

Question 19

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

Accepted Answer

A) procyclical. 
B) countercyclical. 
C) persistent. 
D) positively correlated. 
E) acyclical. 
A) procyclical. 
B) countercyclical. 
C) persistent. 
D) positively correlated. 
E) acyclical.

Which of the following is a feature of Canadian business cycles?

Average labour productivity

Comovement can be discerned by

Real investment tends to be

For the period 1961 2018 in Canada, the price level

If we plotted the level of good cholesterol in the blood against the incidence of heart disease, we would observe a(n)

Which of the following is a feature of Canadian business cycles?

If we plotted cigarettes smoked per year against the incidence of lung cancer, we would observe a(n)

If the correlation coefficient between x and y is equal to 1, we say that x and y are

Real consumption tends to be

Average labour productivity tends to be

Positive correlation between x and y implies that

Real wages are defined as

The defining feature of business cycles is that they

Phillips curves are

Average labour productivity

A measure of the degree of correlation between two variables is a

Comovement relates to

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

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

Which of the following is a feature of Canadian business cycles?

Average labour productivity

Comovement can be discerned by

Real investment tends to be

For the period 1961 2018 in Canada, the price level

If we plotted the level of good cholesterol in the blood against the incidence of heart disease, we would observe a(n)

Which of the following is a feature of Canadian business cycles?

If we plotted cigarettes smoked per year against the incidence of lung cancer, we would observe a(n)

If the correlation coefficient between x and y is equal to 1, we say that x and y are

Real consumption tends to be

Average labour productivity tends to be

Positive correlation between x and y implies that

Real wages are defined as

The defining feature of business cycles is that they

Phillips curves are

Average labour productivity

A measure of the degree of correlation between two variables is a

Comovement relates to

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

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