Question 1

When the automobile replaced the horse as the primary means of transportation,the unemployment rate of blacksmiths increased.This was an example of

Accepted Answer

A) cyclical unemployment. 
B) frictional unemployment. 
C) seasonal unemployment. 
D) structural unemployment. 
A) cyclical unemployment. 
B) frictional unemployment. 
C) seasonal unemployment. 
D) structural unemployment.

Question 2

An example of a frictionally unemployed individual is

Accepted Answer

A) Charles who has lost his job as an autoworker because of increased imports. 
B) Mary who quit her job to find work closer to her home. 
C) Sam who lost his job as a real estate salesperson when the housing market went soft. 
D) Cynthia who has few skills and is no longer looking for work. 
A) Charles who has lost his job as an autoworker because of increased imports. 
B) Mary who quit her job to find work closer to her home. 
C) Sam who lost his job as a real estate salesperson when the housing market went soft. 
D) Cynthia who has few skills and is no longer looking for work.

Question 3

The unemployment rate will decrease when

Accepted Answer

A) the duration of unemployment increases. 
B) the average work week falls from 40 to 39 hours. 
C) the age of the labour force increases. 
D) people get discouraged and quit looking for work. 
A) the duration of unemployment increases. 
B) the average work week falls from 40 to 39 hours. 
C) the age of the labour force increases. 
D) people get discouraged and quit looking for work.

Question 4

The long-run trend in business activity is

Accepted Answer

A) downward. 
B) constant. 
C) upward. 
D) such that it cannot be described as a trend. 
A) downward. 
B) constant. 
C) upward. 
D) such that it cannot be described as a trend.

Question 5

Unanticipated positive inflation will create

Accepted Answer

A) losses for creditors and gains for debtors. 
B) losses for both creditors and debtors. 
C) gains for both creditors and debtors. 
D) gains for creditors and losses for debtors. 
A) losses for creditors and gains for debtors. 
B) losses for both creditors and debtors. 
C) gains for both creditors and debtors. 
D) gains for creditors and losses for debtors.

Question 6

With the aid of a diagram,describe the complete business cycle in the short-run and long-run.

Accepted Answer

In the short run the economy goes from p

Question 7

What is meant by full employment? Why isn't the full employment rate zero?

Accepted Answer

Full employment is the level of unemploy

Question 8

When there is full employment

Accepted Answer

A) everyone has a job. 
B) there is no frictional unemployment. 
C) there are no job vacancies. 
D) the level of unemployment corresponds to the "normal" friction in the labour market. 
A) everyone has a job. 
B) there is no frictional unemployment. 
C) there are no job vacancies. 
D) the level of unemployment corresponds to the "normal" friction in the labour market.

Question 9

Unemployment implies that society is

Accepted Answer

A) on the wrong point on its production possibilities curve. 
B) inside its production possibilities curve. 
C) outside its production possibilities curve. 
D) on an endpoint of the production possibilities curve. 
A) on the wrong point on its production possibilities curve. 
B) inside its production possibilities curve. 
C) outside its production possibilities curve. 
D) on an endpoint of the production possibilities curve.

Question 10

The unemployment rate can increase when

Accepted Answer

A) the number of job finders increases. 
B) the size of the military increases. 
C) the proportion of 18-22 year olds who go to college increases. 
D) the duration of unemployment increases. 
A) the number of job finders increases. 
B) the size of the military increases. 
C) the proportion of 18-22 year olds who go to college increases. 
D) the duration of unemployment increases.

Question 11

Assume that the current price of a market basket of goods is $2,500 and the base year price of the same market basket is $1,340.The price index is

Accepted Answer

A) 53.6. 
B) 40.0. 
C) 138.3. 
D) 186.6. 
A) 53.6. 
B) 40.0. 
C) 138.3. 
D) 186.6.

Question 12

What is a price index? How do the CPI,the PPI and the GDP deflator differ?

Accepted Answer

A price index is the cost of today's mar

Question 13

Historically,Canada has experienced

Accepted Answer

A) continuous decreases in the unemployment rate since WW II. 
B) periods of both increases and decreases in the unemployment rate since WW II. 
C) continuous increases in the unemployment rate since WW II. 
D) no changes in the unemployment rate since WW II. 
A) continuous decreases in the unemployment rate since WW II. 
B) periods of both increases and decreases in the unemployment rate since WW II. 
C) continuous increases in the unemployment rate since WW II. 
D) no changes in the unemployment rate since WW II.

Question 14

A person quits her job in order to spend time looking for a better-paying job.This is an example of

Accepted Answer

A) frictional unemployment. 
B) cyclical unemployment. 
C) seasonal unemployment. 
D) structural unemployment. 
A) frictional unemployment. 
B) cyclical unemployment. 
C) seasonal unemployment. 
D) structural unemployment.

Question 15

Dividing the number unemployed by the number of people in the labour force yields

Accepted Answer

A) the rate of unemployment. 
B) the labour force participation rate. 
C) the inflation rate. 
D) the Help Wanted Index. 
A) the rate of unemployment. 
B) the labour force participation rate. 
C) the inflation rate. 
D) the Help Wanted Index.

Question 16

An increase in the labour force participation rate

Accepted Answer

A) implies that the unemployment rate must fall. 
B) implies that the unemployment rate must rise. 
C) means there are more discouraged workers. 
D) is consistent with either a rise or a fall in the unemployment rate. 
A) implies that the unemployment rate must fall. 
B) implies that the unemployment rate must rise. 
C) means there are more discouraged workers. 
D) is consistent with either a rise or a fall in the unemployment rate.

Question 17

The adult population is divided into what three groups? How is it determined whether someone is in the labour force or not?

Accepted Answer

The adult population is in one

Question 18

What are discouraged workers and how do they affect labour force participation and unemployment rates?

Accepted Answer

Discouraged workers are people who have

Question 19

The unemployment rate can decrease when

Accepted Answer

A) the number of job finders decreases. 
B) the size of the military decreases. 
C) the proportion of 18-22 year olds who go to college decreases. 
D) the duration of unemployment decreases. 
A) the number of job finders decreases. 
B) the size of the military decreases. 
C) the proportion of 18-22 year olds who go to college decreases. 
D) the duration of unemployment decreases.

Question 20

Official unemployment rates may underestimate the true rate of unemployment because the official rate

Accepted Answer

A) includes those workers who only work part-time. 
B) may include some individuals who are not actually in the labour force. 
C) does not include individuals receiving any type of unemployment compensation. 
D) fails to include discouraged workers. 
A) includes those workers who only work part-time. 
B) may include some individuals who are not actually in the labour force. 
C) does not include individuals receiving any type of unemployment compensation. 
D) fails to include discouraged workers.

When the automobile replaced the horse as the primary means of transportation,the unemployment rate of blacksmiths increased.This was an example of

An example of a frictionally unemployed individual is

The unemployment rate will decrease when

The long-run trend in business activity is

Unanticipated positive inflation will create

With the aid of a diagram,describe the complete business cycle in the short-run and long-run.

What is meant by full employment? Why isn't the full employment rate zero?

When there is full employment

Unemployment implies that society is

The unemployment rate can increase when

Assume that the current price of a market basket of goods is $2,500 and the base year price of the same market basket is $1,340.The price index is

What is a price index? How do the CPI,the PPI and the GDP deflator differ?

Historically,Canada has experienced

A person quits her job in order to spend time looking for a better-paying job.This is an example of

Dividing the number unemployed by the number of people in the labour force yields

An increase in the labour force participation rate

The adult population is divided into what three groups? How is it determined whether someone is in the labour force or not?

What are discouraged workers and how do they affect labour force participation and unemployment rates?

The unemployment rate can decrease when

Official unemployment rates may underestimate the true rate of unemployment because the official rate

The Nature of Economics

Production Possibilities and Economic Systems

Demand and Supply

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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Exam 4: Introduction to Macroeconomics

When the automobile replaced the horse as the primary means of transportation,the unemployment rate of blacksmiths increased.This was an example of

An example of a frictionally unemployed individual is

The unemployment rate will decrease when

The long-run trend in business activity is

Unanticipated positive inflation will create

With the aid of a diagram,describe the complete business cycle in the short-run and long-run.

What is meant by full employment? Why isn't the full employment rate zero?

When there is full employment

Unemployment implies that society is

The unemployment rate can increase when

Assume that the current price of a market basket of goods is $2,500 and the base year price of the same market basket is $1,340.The price index is

What is a price index? How do the CPI,the PPI and the GDP deflator differ?

Historically,Canada has experienced

A person quits her job in order to spend time looking for a better-paying job.This is an example of

Dividing the number unemployed by the number of people in the labour force yields

An increase in the labour force participation rate

The adult population is divided into what three groups? How is it determined whether someone is in the labour force or not?

What are discouraged workers and how do they affect labour force participation and unemployment rates?

The unemployment rate can decrease when

Official unemployment rates may underestimate the true rate of unemployment because the official rate

The Nature of Economics

Production Possibilities and Economic Systems

Demand and Supply

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters