Exam 2: The Measurement and Structure of the Canadian Economy

The country of Old Jersey produces milk and butter,and it has published the following macroeconomic data,where quantities are in gallons and prices are dollars per gallon: 2001 2002 Good Quantity Price Quantity Price Milk 500 \ 2 900 \ 3 Butter 2000 \ 1 3000 \ 2 Between 2001 and 2002,the percent change in the price level as measured by a fixed-weight index that uses production in 2001 as the fixed "basket" of goods was

The real interest rate is equal to

Assume that the municipal government of Lethbridge,Alberta,has taxes of $500,government purchases of $350,transfer payments of $150,and interest expenses of $50.The government budget would

Which of the following statements is true?

The uses-of-saving identity shows that if the government budget deficit rises,then which of the following must happen?

Suppose Toyota built a new automobile plant in Mexico using Japanese management practices,Canadian capital,and Mexican labour.Which of the following statements would be true?

In 2001 private saving in the country of Polity was $112 billion,investment was $114.5 billion,and the current account balance was -$26.5 billion.From the uses-of-saving identity,how much was the government of Polity saving?

The Compagnie Naturelie sells mounted butterflies,using butterfly bait it buys from another firm for $20 thousand.It pays its workers $35 thousand,pays $1 thousand in taxes,and has profits of $3 thousand.What is its value added?

If a Canadian construction company built a road in Kuwait,this activity would be

The value added of a producer is the

Which of the following statements is true?

Which of the following statements is false?

Monica grows coconuts and catches fish.Last year she harvested 1500 coconuts and 600 fish.She values one fish as worth three coconuts.She gave Rachel 300 coconuts and 100 fish for helping her to harvest coconuts and catch fish,all of which were consumed by Rachel.Monica set aside 200 fish to help with next year's harvest.In terms of fish,Monica's income would equal

Saving is a ________ variable,and wealth is a ________ variable.

If real interest is 2 percent and the expected inflation rate is 5 percent,then the nominal interest rate is

Measuring GDP in nominal terms

The country of Old Jersey produces milk and butter,and it has published the following macroeconomic data,where quantities are in gallons and prices are dollars per gallon: 2000 2001 Good Quantity Price Quantity Price Milk 500 \ 2 900 \ 3 Butter 2000 \ 1 3000 \ 2 Between 2000 and 2001,real GDP grew by how much,using a variable-weight price index?

Nominal GDP in Kwaki was $674.8 billion in 2001 and $688.4 billion in 2002.The GDP deflator was 121.6 for 2001 and 123.3 for 2002. a.What is the growth rate of nominal GDP between 2001 and 2002? b.What is the inflation rate from 2001 to 2002? c.What is the growth rate of real GDP from 2001 to 2002?

Nominal personal consumption expenditures in Canada were $172.4 billion in 1980 and rose to $399.3 billion in 1990.The implicit price deflator for personal consumption expenditures is 67 for 1980 and 118.6 for 1990,where 1986 is the base year.Calculate the percent change in real personal consumption expenditures (rounded to the nearest percentage point)in the decade.

If a country runs a current account ________,it means that its national saving is ________ than investment.