Exam 2: Measuring the Macroeconomy

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Table 2.4 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 2011 $\quad$$\quad$$\quad$$\quad$ 2012 Noriiral GDP \ 555 million \ 610 rillion Real GDP \ 480 rillion \ 575 million -Refer to Figure 2.4.The inflation rate for 2012 is

Which of the following is likely to increase measured GDP in Canada?

If the real interest rate is 3% and the expected inflation rate is 6%,then the nominal interest rate is

In national income accounting,the value of worn-out or obsolete capital is represented by

List and briefly describe the 4 categories of expenditures included in GDP.

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Table 2.2 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 2012 $\quad$$\quad$$\quad$$\quad$ 2013 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Quantity Price $\quad$ Quantity Price Orarpes 30 \ 0.30 40 \ 0.50 Egp Rolls 60 1.10 75 1.30 Whistles 50 2.00 50 2.25 Table 2.2 gives quantities and prices for each good produced in a simple economy in 2012 and 2013. -Refer to Figure 2.2.Calculate GDP in 2012 and 2013.

National income accounting reveals that the value of total production in an economy is ________ the value of total income.

Economists measure the price level with a(n)________,which is a measure of the average of the prices of goods and services in one year relative to a base year.

If Statistics Canada uses a base year of 2007 for prices,real GDP will be ________ nominal GDP in 2007.

All of the following are government purchases,except

The cost of borrowing funds that is stated on a loan is the

Suppose you borrow $2000 for one year and at the end of the year you repay the $2000 plus $110 of interest.If the expected inflation rate was 2.2% at the time you took out the loan,what was the real interest rate you paid?

When the cost of borrowing funds that is stated on a loan is adjusted for the effects of inflation,the resulting interest rate is called the

The Bank of Canada may use core CPI,which excludes items such as food and energy,as a measure of inflation because

To make data comparable across countries,and to have uniform methodology of calculating output,countries use the

Under the inflation targeting framework,introduced in 1991,the Bank of Canada aims to maintain the CPI inflation between

The CPI does a better job than the GDP deflator at measuring changes in the

Gross national product (GNP)of Canada is the value of all final goods and services

Suppose the working-age population of a fictional economy falls into the following categories: 30 are retired; 45 are stay-at-home parents; 120 are employed full time; 40 are employed part time; 25 are unemployed but are actively looking for employment; 15 are unemployed and are not actively looking for employment.The official unemployment rate as calculated by Statistics Canada would be

Suppose the population of a fictional economy falls into the following categories: 320 are employed full time; 110 are employed part time; 20 are unemployed but are actively looking for employment; 50 are unemployed and are not actively looking for employment.The official unemployment rate as calculated by Statistics Canada would be