Question 1

Over the last half of the 20th century in Canada,the participation rates

Accepted Answer

A)  of both men and women have increased. 
B)  of men has increased and the participation rate of women has decreased. 
C)  of women has increased and the participation rate of men has decreased. 
D)  of both men and women have decreased. 
E)  of both men and women have remained constant. 
A)  of both men and women have increased. 
B)  of men has increased and the participation rate of women has decreased. 
C)  of women has increased and the participation rate of men has decreased. 
D)  of both men and women have decreased. 
E)  of both men and women have remained constant.

Question 2

There has been considerable debate as to the appropriate level of Employment Insurance benefits paid out to unemployed workers.Suppose the government increases the level of Employment Insurance benefits.What would happens to the incentive to search,the size of the labour force,and the unemployment rate in the long run?

Accepted Answer

An increase in Employment Insurance bene

Question 3

In the DMP model,the equilibrium effects of an increase in productivity are to

Accepted Answer

A)  increase market tightness, decrease unemployment, and increase aggegate output. 
B)  decrease market tightness, decrease unemployment, and increase aggregate output. 
C)  decrease market tightness, decrease unemployment, and decrease aggregate output. 
D)  increase market tightness, increase unemployment, and decrease aggregate output. 
E)  increase market tightness, increases unemployment, and increases aggregate output. 
A)  increase market tightness, decrease unemployment, and increase aggegate output. 
B)  decrease market tightness, decrease unemployment, and increase aggregate output. 
C)  decrease market tightness, decrease unemployment, and decrease aggregate output. 
D)  increase market tightness, increase unemployment, and decrease aggregate output. 
E)  increase market tightness, increases unemployment, and increases aggregate output.

Question 4

In equilibrium,an increase in Employment Insurance benefits

Accepted Answer

A)  decreases labour market tightness, but has ambiguous effects on Q and Y. 
B)  increases labour market tightness, but has ambiguous effects on Q and Y. 
C)  decreases labour market tightness and Q, but increases Y. 
D)  decreases unemployment, but has ambiguous effects on Q and Y. 
E)  increases labour market tightness, Q, and Y. 
A)  decreases labour market tightness, but has ambiguous effects on Q and Y. 
B)  increases labour market tightness, but has ambiguous effects on Q and Y. 
C)  decreases labour market tightness and Q, but increases Y. 
D)  decreases unemployment, but has ambiguous effects on Q and Y. 
E)  increases labour market tightness, Q, and Y.

Question 5

A key determinant of the unemployment rate is

Accepted Answer

A)  labour market unrest. 
B)  nominal interest rates. 
C)  aggregate consumption. 
D)  aggregate economic activity. 
E)  the participation rate. 
A)  labour market unrest. 
B)  nominal interest rates. 
C)  aggregate consumption. 
D)  aggregate economic activity. 
E)  the participation rate.

Question 6

In equilibrium,an decrease in matching efficiency

Accepted Answer

A)  increases the unemployment rate and vacancies are constant. 
B)  increases the unemployment rate and vacancies increase. 
C)  decreases the unemployment rate and vacancies are constant. 
D)  decreases the unemployment rate and vacancies increase. 
E)  increases the unemployment rate and vacancies decrease. 
A)  increases the unemployment rate and vacancies are constant. 
B)  increases the unemployment rate and vacancies increase. 
C)  decreases the unemployment rate and vacancies are constant. 
D)  decreases the unemployment rate and vacancies increase. 
E)  increases the unemployment rate and vacancies decrease.

Question 7

Which of the following is an assumption in the DMP model about the matching function?

Accepted Answer

A)  The increase in matches from an increase in Q is increasing in Q. 
B)  The number of matches increases if Q increases but A decreases. 
C)  The number of matches increases if Q or A decrease. 
D)  The increase in matches from an increase in A is increasing in A. 
E)  The increase in matches from an increase in Q is decreasing in Q. 
A)  The increase in matches from an increase in Q is increasing in Q. 
B)  The number of matches increases if Q increases but A decreases. 
C)  The number of matches increases if Q or A decrease. 
D)  The increase in matches from an increase in A is increasing in A. 
E)  The increase in matches from an increase in Q is decreasing in Q.

Question 8

In equilibrium in the DMP model,labour force participation is

Accepted Answer

A)  the ratio of market tightness to the cost of a vacancy. 
B)  increasing in market tightness. 
C)  decreasing with increases in the benefits from searching. 
D)  decreasing in market tightness. 
E)  not dependent on market tightness. 
A)  the ratio of market tightness to the cost of a vacancy. 
B)  increasing in market tightness. 
C)  decreasing with increases in the benefits from searching. 
D)  decreasing in market tightness. 
E)  not dependent on market tightness.

Question 9

Which of the following represents the key criticism of the Keynesian DMP model?

Accepted Answer

A)  There is good reason to believe bargaining power fluctuates significantly over time. 
B)  Output is too low relative to unemployment. 
C)  Output is too high relative to unemployment. 
D)  Wages should be governed by market forces. 
E)  Wages are not really sticky. 
A)  There is good reason to believe bargaining power fluctuates significantly over time. 
B)  Output is too low relative to unemployment. 
C)  Output is too high relative to unemployment. 
D)  Wages should be governed by market forces. 
E)  Wages are not really sticky.

Question 10

A good example of a sectoral shift would be the

Accepted Answer

A)  loss of total Canadian employment to Mexico. 
B)  decrease in the size of manufacturing employment relative to service sector employment in Canada. 
C)  recent influx of immigrants to Canada. 
D)  expansion in the fraction of employees covered by Employment Insurance in Canada. 
E)  outsourcing of Canada's jobs to India. 
A)  loss of total Canadian employment to Mexico. 
B)  decrease in the size of manufacturing employment relative to service sector employment in Canada. 
C)  recent influx of immigrants to Canada. 
D)  expansion in the fraction of employees covered by Employment Insurance in Canada. 
E)  outsourcing of Canada's jobs to India.

Question 11

The behaviour of the unemployment rate in Canada over the period from 1960 through the 1990s can be characterized as

Accepted Answer

A)  an upward trend over the entire period. 
B)  an downward trend from 1970 through the mid-1980s followed by a downward trend for the remainder of the period. 
C)  a upward trend from the late 1960s through the mid-1980s followed by a slight downward trend for the remainder of the period. 
D)  a downward trend over the entire period. 
E)  a very volatile period for unemployment rates. 
A)  an upward trend over the entire period. 
B)  an downward trend from 1970 through the mid-1980s followed by a downward trend for the remainder of the period. 
C)  a upward trend from the late 1960s through the mid-1980s followed by a slight downward trend for the remainder of the period. 
D)  a downward trend over the entire period. 
E)  a very volatile period for unemployment rates.

Question 12

Keynesian ideas can be incorporated into the DMP model by assuming

Accepted Answer

A)  fixed prices for producers of certain goods. 
B)  shocks to aggregate demand. 
C)  bargaining power is random. 
D)  bargaining power is constant. 
E)  shocks to productivity. 
A)  fixed prices for producers of certain goods. 
B)  shocks to aggregate demand. 
C)  bargaining power is random. 
D)  bargaining power is constant. 
E)  shocks to productivity.

Question 13

Over the last half of the 20th century,percentage deviations from trend in unemployment have been

Accepted Answer

A)  procyclical and have been larger than the percentage deviations from trend in real GDP. 
B)  procyclical and have been smaller than the percentage deviations from trend in real GDP. 
C)  countercyclical and have been larger than the percentage deviations from trend in real GDP. 
D)  countercyclical and have been smaller than the percentage deviations from trend in real GDP. 
E)  procyclical and have been smaller than the percentage deviations from trend in labour force participation. 
A)  procyclical and have been larger than the percentage deviations from trend in real GDP. 
B)  procyclical and have been smaller than the percentage deviations from trend in real GDP. 
C)  countercyclical and have been larger than the percentage deviations from trend in real GDP. 
D)  countercyclical and have been smaller than the percentage deviations from trend in real GDP. 
E)  procyclical and have been smaller than the percentage deviations from trend in labour force participation.

Over the last half of the 20th century in Canada,the participation rates

In the DMP model,the equilibrium effects of an increase in productivity are to

In equilibrium,an increase in Employment Insurance benefits

A key determinant of the unemployment rate is

In equilibrium,an decrease in matching efficiency

Which of the following is an assumption in the DMP model about the matching function?

In equilibrium in the DMP model,labour force participation is

Which of the following represents the key criticism of the Keynesian DMP model?

A good example of a sectoral shift would be the

The behaviour of the unemployment rate in Canada over the period from 1960 through the 1990s can be characterized as

Keynesian ideas can be incorporated into the DMP model by assuming

Over the last half of the 20th century,percentage deviations from trend in unemployment have been

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

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 6: Search and Unemployment

Over the last half of the 20th century in Canada,the participation rates

In the DMP model,the equilibrium effects of an increase in productivity are to

In equilibrium,an increase in Employment Insurance benefits

A key determinant of the unemployment rate is

In equilibrium,an decrease in matching efficiency

Which of the following is an assumption in the DMP model about the matching function?

In equilibrium in the DMP model,labour force participation is

Which of the following represents the key criticism of the Keynesian DMP model?

A good example of a sectoral shift would be the

The behaviour of the unemployment rate in Canada over the period from 1960 through the 1990s can be characterized as

Keynesian ideas can be incorporated into the DMP model by assuming

Over the last half of the 20th century,percentage deviations from trend in unemployment have been

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

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