Question 1

Which of the following would make a reasonable hypothesis to test?

Accepted Answer

A)  Rising inflation is bad for the Canadian economy. 
B)  An inflation rate above 4% is dangerous for the British economy. 
C)  As interest rates increase, eventually the inflation rate will decline. 
D)  Increases in inflation are worse for the U.S. economy than are increases in public sector borrowing. 
A)  Rising inflation is bad for the Canadian economy. 
B)  An inflation rate above 4% is dangerous for the British economy. 
C)  As interest rates increase, eventually the inflation rate will decline. 
D)  Increases in inflation are worse for the U.S. economy than are increases in public sector borrowing.

Question 2

How are the labour force and the unemployment rate calculated?

Accepted Answer

The labour force is the sum of employed

Question 3

Which of the following is an example of a fiscal policy?

Accepted Answer

A)  The federal government increases income tax rates on people earning more than $250 000. 
B)  The Bank of Canada takes action to greatly decrease the money supply. 
C)  The Bank of Canada increases interest rates. 
D)  Businesses begin to export and import more products and services. 
A)  The federal government increases income tax rates on people earning more than $250 000. 
B)  The Bank of Canada takes action to greatly decrease the money supply. 
C)  The Bank of Canada increases interest rates. 
D)  Businesses begin to export and import more products and services.

Question 4

Which of the following is an example of a fiscal policy?

Accepted Answer

A)  The Bank of Canada takes action to increase the money supply during an economic recession. 
B)  The federal government increases infrastructure spending during an economic recession. 
C)  The Bank of Canada decreases interest rates during an economic recession. 
D)  Businesses begin to lay off employees and cut back on spending during an economic recession. 
A)  The Bank of Canada takes action to increase the money supply during an economic recession. 
B)  The federal government increases infrastructure spending during an economic recession. 
C)  The Bank of Canada decreases interest rates during an economic recession. 
D)  Businesses begin to lay off employees and cut back on spending during an economic recession.

Question 5

If you were building a macroeconomic model that explores the effect of the increase in interest rates on the inflation rate in Great Britain,interest rates would be an ________ variable and the inflation rate would be an ________ variable.

Accepted Answer

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

Question 6

Financial markets and financial intermediaries together comprise the

Accepted Answer

A)  business cycle. 
B)  economic system. 
C)  macroeconomic model. 
D)  financial system. 
A)  business cycle. 
B)  economic system. 
C)  macroeconomic model. 
D)  financial system.

Question 7

What is the key macroeconomic issue of the short run and what is the key macroeconomic issue of the long run?

Accepted Answer

In the short run,macroeconomic

Question 8

If you were building a macroeconomic model that explores the effect of an increase in income tax rates on the size of the labour force,the exogenous variable(s)would be

Accepted Answer

A)  income tax rates. 
B)  the size of the labour force. 
C)  both income tax rates and the size of the labour force. 
D)  neither income tax rates nor the size of the labour force. 
A)  income tax rates. 
B)  the size of the labour force. 
C)  both income tax rates and the size of the labour force. 
D)  neither income tax rates nor the size of the labour force.

Question 9

Long-run economic growth is the process by which productivity increases

Accepted Answer

A)  the employment rate. 
B)  the average standard of living. 
C)  the size of the labour force. 
D)  federal tax revenues. 
A)  the employment rate. 
B)  the average standard of living. 
C)  the size of the labour force. 
D)  federal tax revenues.

Question 10

As a result of the Great Recession,the unemployment rate in Canada increased from ________ in 2007 to ________ in 2009.

Accepted Answer

A)  5%; 10% 
B)  6%; 9.3% 
C)  7%; 11.4% 
D)  5%; 8.8% 
A)  5%; 10% 
B)  6%; 9.3% 
C)  7%; 11.4% 
D)  5%; 8.8%

Question 11

Firms are able to expand their operations by acquiring funds from households.They can do this directly through financial markets such as ________,or indirectly through financial intermediaries such as ________.

Accepted Answer

A)  stock markets; bond markets 
B)  stock markets; banks 
C)  banks; bond markets 
D)  bond markets; stock markets 
A)  stock markets; bond markets 
B)  stock markets; banks 
C)  banks; bond markets 
D)  bond markets; stock markets

Question 12

What is the difference between an endogenous variable and an exogenous variable?

Accepted Answer

An endogenous variable is a va

Question 13

________ refers to alternating periods of economic expansion and economic recession in an economy.

Accepted Answer

A)  Fiscal policy 
B)  Labour productivity 
C)  The business cycle 
D)  Positive economic analysis 
A)  Fiscal policy 
B)  Labour productivity 
C)  The business cycle 
D)  Positive economic analysis

Question 14

Over the past 20 years,foreign financial investment in Canada has

Accepted Answer

A)  increased significantly. 
B)  decreased significantly. 
C)  remained fairly consistent. 
D)  become negative. 
A)  increased significantly. 
B)  decreased significantly. 
C)  remained fairly consistent. 
D)  become negative.

Question 15

From 2005 to 2008,the average unemployment rate in Canada

Accepted Answer

A)  was higher than the average unemployment rates in most high-income European countries. 
B)  and the average unemployment rates in other high-income countries varied significantly. 
C)  was roughly the same as the average unemployment rates in other high-income countries. 
D)  was the lowest of all high-income countries. 
A)  was higher than the average unemployment rates in most high-income European countries. 
B)  and the average unemployment rates in other high-income countries varied significantly. 
C)  was roughly the same as the average unemployment rates in other high-income countries. 
D)  was the lowest of all high-income countries.

Question 16

In building an economic model,variables that are taken as given are referred to as ________ variables.

Accepted Answer

A)  exogenous 
B)  endogenous 
C)  concrete 
D)  presumptive 
A)  exogenous 
B)  endogenous 
C)  concrete 
D)  presumptive

Question 17

Changes in government taxes and purchases that are intended to achieve macroeconomic policy objectives refer to

Accepted Answer

A)  fiscal policy. 
B)  monetary policy. 
C)  quantitative analysis. 
D)  government transparency. 
A)  fiscal policy. 
B)  monetary policy. 
C)  quantitative analysis. 
D)  government transparency.

Question 18

How do economists measure the "openness" of an economy? Explain if the Canadian economy has become more or less "open" over the past 30 years.

Accepted Answer

Economists measure the "openness" of an

Question 19

In the short run,macroeconomic analysis focuses on ________,while in the long run,the focus is on ________.

Accepted Answer

A)  fiscal policy; monetary policy 
B)  short-run economic growth; population demographics 
C)  unemployment; inflation 
D)  the business cycle; long-run economic growth 
A)  fiscal policy; monetary policy 
B)  short-run economic growth; population demographics 
C)  unemployment; inflation 
D)  the business cycle; long-run economic growth

Question 20

In Canada,periods of deflation

Accepted Answer

A)  primarily occurred during times of war. 
B)  were virtually nonexistent until after 1980. 
C)  have never occurred for more than one year. 
D)  were relatively common prior to 1930. 
A)  primarily occurred during times of war. 
B)  were virtually nonexistent until after 1980. 
C)  have never occurred for more than one year. 
D)  were relatively common prior to 1930.

Which of the following would make a reasonable hypothesis to test?

How are the labour force and the unemployment rate calculated?

Which of the following is an example of a fiscal policy?

Which of the following is an example of a fiscal policy?

If you were building a macroeconomic model that explores the effect of the increase in interest rates on the inflation rate in Great Britain,interest rates would be an variable and the inflation rate would be an variable.

Financial markets and financial intermediaries together comprise the

What is the key macroeconomic issue of the short run and what is the key macroeconomic issue of the long run?

If you were building a macroeconomic model that explores the effect of an increase in income tax rates on the size of the labour force,the exogenous variable(s)would be

Long-run economic growth is the process by which productivity increases

As a result of the Great Recession,the unemployment rate in Canada increased from in 2007 to in 2009.

Firms are able to expand their operations by acquiring funds from households.They can do this directly through financial markets such as ,or indirectly through financial intermediaries such as .

What is the difference between an endogenous variable and an exogenous variable?

________ refers to alternating periods of economic expansion and economic recession in an economy.

Over the past 20 years,foreign financial investment in Canada has

From 2005 to 2008,the average unemployment rate in Canada

In building an economic model,variables that are taken as given are referred to as ________ variables.

Changes in government taxes and purchases that are intended to achieve macroeconomic policy objectives refer to

How do economists measure the "openness" of an economy? Explain if the Canadian economy has become more or less "open" over the past 30 years.

In the short run,macroeconomic analysis focuses on ,while in the long run,the focus is on .

In Canada,periods of deflation

Measuring the Macroeconomy

The Canadian Financial System

Money and Inflation

The Global Financial System and Exchange Rates

The Labour Market

The Standard of Living Over Time and Across Countries

Long-Run Economic Growth

Business Cycles

Explaining Aggregate Demand: the Is-Mp Model

The Is-Mp Model: Adding Inflation and the Open Economy

Monetary Policy in the Short Run

Fiscal Policy in the Short Run

Aggregate Demand, aggregate Supply, and Monetary Policy

Fiscal Policy and the Government Budget in the Long Run

Consumption and Investment

Filters

Exam 1: Introduction to Macroeconomics and the Great Recession

Which of the following would make a reasonable hypothesis to test?

How are the labour force and the unemployment rate calculated?

Which of the following is an example of a fiscal policy?

Which of the following is an example of a fiscal policy?

If you were building a macroeconomic model that explores the effect of the increase in interest rates on the inflation rate in Great Britain,interest rates would be an ________ variable and the inflation rate would be an ________ variable.

Financial markets and financial intermediaries together comprise the

What is the key macroeconomic issue of the short run and what is the key macroeconomic issue of the long run?

If you were building a macroeconomic model that explores the effect of an increase in income tax rates on the size of the labour force,the exogenous variable(s)would be

Long-run economic growth is the process by which productivity increases

As a result of the Great Recession,the unemployment rate in Canada increased from ________ in 2007 to ________ in 2009.

Firms are able to expand their operations by acquiring funds from households.They can do this directly through financial markets such as ________,or indirectly through financial intermediaries such as ________.

What is the difference between an endogenous variable and an exogenous variable?

________ refers to alternating periods of economic expansion and economic recession in an economy.

Over the past 20 years,foreign financial investment in Canada has

From 2005 to 2008,the average unemployment rate in Canada

In building an economic model,variables that are taken as given are referred to as ________ variables.

Changes in government taxes and purchases that are intended to achieve macroeconomic policy objectives refer to

How do economists measure the "openness" of an economy? Explain if the Canadian economy has become more or less "open" over the past 30 years.

In the short run,macroeconomic analysis focuses on ________,while in the long run,the focus is on ________.

In Canada,periods of deflation

Measuring the Macroeconomy

The Canadian Financial System

Money and Inflation

The Global Financial System and Exchange Rates

The Labour Market

The Standard of Living Over Time and Across Countries

Long-Run Economic Growth

Business Cycles

Explaining Aggregate Demand: the Is-Mp Model

The Is-Mp Model: Adding Inflation and the Open Economy

Monetary Policy in the Short Run

Fiscal Policy in the Short Run

Aggregate Demand, aggregate Supply, and Monetary Policy

Fiscal Policy and the Government Budget in the Long Run

Consumption and Investment

Filters

If you were building a macroeconomic model that explores the effect of the increase in interest rates on the inflation rate in Great Britain,interest rates would be an variable and the inflation rate would be an variable.

As a result of the Great Recession,the unemployment rate in Canada increased from in 2007 to in 2009.

Firms are able to expand their operations by acquiring funds from households.They can do this directly through financial markets such as ,or indirectly through financial intermediaries such as .

In the short run,macroeconomic analysis focuses on ,while in the long run,the focus is on .