Exam 1: Introduction to Macroeconomics and the Great Recession

The severity of the 2007-2009 recession was due to the severity of the accompanying financial crisis.Explain what is meant by financial crisis.

Explain how the standard of living of the average person in an economy can increase.

What does the inflation rate measure,and what is deflation?

Since 1900,real GDP per capita in Canada has ________ in the short run and has ________ in the long run.

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

What is fiscal policy?

The economic analysis of extending the duration of unemployment benefits to 99 weeks involves both positive and normative analysis.Consider the following consequences of extending the duration of unemployment benefits: a. Extending the duration of unemployment benefits to 99 weeks will create less incentive for some unemployed workers to seek employment. b) Extending the duration of unemployment benefits to 99 weeks will increase the total amount of government expenditure on unemployment benefits. c) The benefits received by those collecting unemployment benefits should be valued more highly than the increase in government expenditure needed to pay the benefits. d) By extending the duration of unemployment benefits to 99 weeks,the unemployed will have more time to acquire new skills before reentering the workforce. Which of the consequences above are positive statements and which are normative statements?

Describe how you might analyze and evaluate the following claim: College students who graduate during an economic recession accept jobs that,on average,pay 9% less than jobs accepted by students who graduate during economic expansions.