Question 1

Real wages are defined as

Accepted Answer

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

Question 2

In their study on business cycles,Backus and Kehoe found

Accepted Answer

A)  correlations amongst real economic variables differed greatly among countries. 
B)  price level was consistently procyclical. 
C)  no consistent correlations amongst economic variables. 
D)  price level was consistently countercyclical. 
E)  correlations amongst real economic variables were similar across countries and over time. 
A)  correlations amongst real economic variables differed greatly among countries. 
B)  price level was consistently procyclical. 
C)  no consistent correlations amongst economic variables. 
D)  price level was consistently countercyclical. 
E)  correlations amongst real economic variables were similar across countries and over time.

Question 3

Comovement can be determined by

Accepted Answer

A)  examining a scatter plot. 
B)  economic forecaseting models. 
C)  determining whether a series leads or lags. 
D)  determining the persistence in a series. 
E)  marking peaks and troughs. 
A)  examining a scatter plot. 
B)  economic forecaseting models. 
C)  determining whether a series leads or lags. 
D)  determining the persistence in a series. 
E)  marking peaks and troughs.

Question 4

The property that macroeconomic variables fluctuate together in patterns that exhibit strong regularities is called

Accepted Answer

A)  coincidence. 
B)  comovement. 
C)  correlation. 
D)  coexistence. 
E)  a leading indicator. 
A)  coincidence. 
B)  comovement. 
C)  correlation. 
D)  coexistence. 
E)  a leading indicator.

Question 5

Which of the following best explains why the U.S.experienced a Great Moderation while Canada did not?

Accepted Answer

A)  Canadian luck was worse than the U.S.'s. 
B)  Financial development was stronger in the U.S. 
C)  Monetary policies differed significantly between the two countries. 
D)  Canadian luck was better than the U.S.'s. 
E)  Financial development was stronger in Canada. 
A)  Canadian luck was worse than the U.S.'s. 
B)  Financial development was stronger in the U.S. 
C)  Monetary policies differed significantly between the two countries. 
D)  Canadian luck was better than the U.S.'s. 
E)  Financial development was stronger in Canada.

Question 6

The weight of empirical evidence suggests that in Canada,the real wage rate is

Accepted Answer

A)  acyclical. 
B)  bicyclical. 
C)  procyclical. 
D)  countercyclical. 
E)  lagging. 
A)  acyclical. 
B)  bicyclical. 
C)  procyclical. 
D)  countercyclical. 
E)  lagging.

Question 7

Negative correlation between x and y implies that

Accepted Answer

A)  when x is high, y is high. 
B)  when x is high, y is low. 
C)  xy < 0. 
D)  x/y < 0. 
E)  the trend is unpredictable. 
A)  when x is high, y is high. 
B)  when x is high, y is low. 
C)  xy < 0. 
D)  x/y < 0. 
E)  the trend is unpredictable.

Question 8

The 2008-2009 rcession was more severe than all recent recessions except the one in

Accepted Answer

A)  1981-1982. 
B)  1974-1975. 
C)  1990-1991. 
D)  2001-2002. 
E)  1969-1973. 
A)  1981-1982. 
B)  1974-1975. 
C)  1990-1991. 
D)  2001-2002. 
E)  1969-1973.

Question 9

For the period 1976-2011,employment in Canada was

Accepted Answer

A)  procyclical and leading. 
B)  procyclical and lagging. 
C)  countercyclical and leading. 
D)  countercyclical and lagging. 
E)  coincident. 
A)  procyclical and leading. 
B)  procyclical and lagging. 
C)  countercyclical and leading. 
D)  countercyclical and lagging. 
E)  coincident.

Question 10

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

Accepted Answer

A)  The time series of deviations from trend in real GDP is quite smooth. 
B)  There is regularity in flucuations 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)  There is no regularity in the amplitude of fluctuations in real GDP about trend. 
A)  The time series of deviations from trend in real GDP is quite smooth. 
B)  There is regularity in flucuations 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)  There is no regularity in the amplitude of fluctuations in real GDP about trend.

Question 11

For the period 1961-2011 in Canada,the money supply was

Accepted Answer

A)  procyclical and leading. 
B)  procyclical and lagging. 
C)  countercyclical and leading. 
D)  countercyclical and lagging. 
E)  coincident. 
A)  procyclical and leading. 
B)  procyclical and lagging. 
C)  countercyclical and leading. 
D)  countercyclical and lagging. 
E)  coincident.

Question 12

The Composite Index of Business Leading Indicators tends to

Accepted Answer

A)  lag income growth. 
B)  lag employment growth. 
C)  lead employment growth. 
D)  lead inflation. 
E)  lead real GDP. 
A)  lag income growth. 
B)  lag employment growth. 
C)  lead employment growth. 
D)  lead inflation. 
E)  lead real GDP.

Question 13

The observation that the money supply is procyclical and leading the level of aggregate economic activity is most closely associated with

Accepted Answer

A)  Lucas and Friedman. 
B)  Friedman and Schwartz. 
C)  Kydland and Prescott. 
D)  David Runkle. 
E)  Keynes. 
A)  Lucas and Friedman. 
B)  Friedman and Schwartz. 
C)  Kydland and Prescott. 
D)  David Runkle. 
E)  Keynes.

Question 14

Before 2000,the three most recent Canadian recessions occurred in

Accepted Answer

A)  1969-1973, 1979-1982, and 1994-1995. 
B)  1973-1975, 1982-1985, and 1990-1991. 
C)  1974-1975, 1981-1982, and 1990-1992. 
D)  1981-1982, 1990-1991, and 1998-1999. 
E)  1944-1945, 1955-1956, and 1990-1992. 
A)  1969-1973, 1979-1982, and 1994-1995. 
B)  1973-1975, 1982-1985, and 1990-1991. 
C)  1974-1975, 1981-1982, and 1990-1992. 
D)  1981-1982, 1990-1991, and 1998-1999. 
E)  1944-1945, 1955-1956, and 1990-1992.

Question 15

Comovement relates to

Accepted Answer

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

Question 16

Average labour productivity tends to be a

Accepted Answer

A)  lagging variable. 
B)  coincident variable. 
C)  leading variable. 
D)  an acyclical variable. 
E)  variable that is difficult to classify. 
A)  lagging variable. 
B)  coincident variable. 
C)  leading variable. 
D)  an acyclical variable. 
E)  variable that is difficult to classify.

Question 17

The Great Moderation is a period of reduced variability in real GDP that

Accepted Answer

A)  applies well to the experience in the U.S. from 1980-2007, but less so in Canada. 
B)  applies well to the experience in Canada from 1980-2007, but less so in the U.S. 
C)  was perceived to have occurred but really did not. 
D)  applies well to the experience in the U.S. and Canada from 1940-1980. 
E)  applies well to the experience in Canada since 2010, but less so in the U.S. 
A)  applies well to the experience in the U.S. from 1980-2007, but less so in Canada. 
B)  applies well to the experience in Canada from 1980-2007, but less so in the U.S. 
C)  was perceived to have occurred but really did not. 
D)  applies well to the experience in the U.S. and Canada from 1940-1980. 
E)  applies well to the experience in Canada since 2010, but less so in the U.S.

Question 18

The Phillips curve shows the relationship between

Accepted Answer

A)  real and nominal interest rates. 
B)  real and nominal GDP. 
C)  money prices and aggregate economic activity. 
D)  procyclical and countercyclical variables. 
E)  lagging an leading variables. 
A)  real and nominal interest rates. 
B)  real and nominal GDP. 
C)  money prices and aggregate economic activity. 
D)  procyclical and countercyclical variables. 
E)  lagging an leading variables.

Question 19

If a macroeconomic variable tends to aid in predicting the future path of real GDP,it is said to be a

Accepted Answer

A)  convenient variable. 
B)  coincident variable. 
C)  leading variable. 
D)  lagging variable. 
E)  correlated variable. 
A)  convenient variable. 
B)  coincident variable. 
C)  leading variable. 
D)  lagging variable. 
E)  correlated variable.

Question 20

If deviations from trend in a macroeconomic variable are negatively correlated with deviations from trend in real GDP,that variable is said to be

Accepted Answer

A)  useless in predicting future movements in real GDP. 
B)  procyclical. 
C)  countercyclical. 
D)  acyclical. 
E)  uncorrelated. 
A)  useless in predicting future movements in real GDP. 
B)  procyclical. 
C)  countercyclical. 
D)  acyclical. 
E)  uncorrelated.

Real wages are defined as

In their study on business cycles,Backus and Kehoe found

Comovement can be determined by

The property that macroeconomic variables fluctuate together in patterns that exhibit strong regularities is called

Which of the following best explains why the U.S.experienced a Great Moderation while Canada did not?

The weight of empirical evidence suggests that in Canada,the real wage rate is

Negative correlation between x and y implies that

The 2008-2009 rcession was more severe than all recent recessions except the one in

For the period 1976-2011,employment in Canada was

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

For the period 1961-2011 in Canada,the money supply was

The Composite Index of Business Leading Indicators tends to

The observation that the money supply is procyclical and leading the level of aggregate economic activity is most closely associated with

Before 2000,the three most recent Canadian recessions occurred in

Comovement relates to

Average labour productivity tends to be a

The Great Moderation is a period of reduced variability in real GDP that

The Phillips curve shows the relationship between

If a macroeconomic variable tends to aid in predicting the future path of real GDP,it is said to be a

If deviations from trend in a macroeconomic variable are negatively correlated with deviations from trend in real GDP,that variable is said to be

Introduction

Measurement

Consumer and Firm Behavior: The Work–Leisure 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 Consumption–Savings 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

Real wages are defined as

In their study on business cycles,Backus and Kehoe found

Comovement can be determined by

The property that macroeconomic variables fluctuate together in patterns that exhibit strong regularities is called

Which of the following best explains why the U.S.experienced a Great Moderation while Canada did not?

The weight of empirical evidence suggests that in Canada,the real wage rate is

Negative correlation between x and y implies that

The 2008-2009 rcession was more severe than all recent recessions except the one in

For the period 1976-2011,employment in Canada was

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

For the period 1961-2011 in Canada,the money supply was

The Composite Index of Business Leading Indicators tends to

The observation that the money supply is procyclical and leading the level of aggregate economic activity is most closely associated with

Before 2000,the three most recent Canadian recessions occurred in

Comovement relates to

Average labour productivity tends to be a

The Great Moderation is a period of reduced variability in real GDP that

The Phillips curve shows the relationship between

If a macroeconomic variable tends to aid in predicting the future path of real GDP,it is said to be a

If deviations from trend in a macroeconomic variable are negatively correlated with deviations from trend in real GDP,that variable is said to be

Introduction

Measurement

Consumer and Firm Behavior: The Work–Leisure 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 Consumption–Savings 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