Exam 4: Introduction to Macroeconomics

Who is harmed by inflation and who benefits? How can banks and workers protect themselves against anticipated inflation? Hint: think in terms of who owns and who owes.

Frictional unemployment would increase when

If the rate of inflation is 4 percent and the real interest rate is 3 percent,the nominal interest rate should be

An individual with good job prospects who is between jobs is

Which of the following would not be considered unemployed?

A period of time in which the overall business activity is falling is known as

As a consumer,how would your behaviour change during a period of hyperinflation if one were to exist in Canada?

Typically,nominal interest rates and anticipated inflation rates

Define monetary and fiscal policy and discuss their primary use.

The labour-force participation rate shows the percentage of

Most of the problems caused by inflation are caused by the fact that

Decreases in the duration of unemployment will

Last year the price of a dozen eggs was $1 and this year the price is $1.30.Which of the following does NOT express this price change accurately?

The unemployed and the employed combined represent

Cutbacks in auto sales due to increased imports from Japan is an example of

The faster the drop in the purchasing power of money,the

Suppose that you borrow $5,000 from the bank to purchase some land,and you agree to pay 9 percent interest on the loan.If the loan must be repaid in 12 months,and the inflation rate is 13 percent during the year,then

Last year a CD had a price of $12 and this year it is $15.Which of the following does not express this price change accurately?

Last year you purchased 20 shirts at $15 a piece,30 CDs at $12 each,and 5 sweaters at $25 a piece.This year you buy 16 shirts at $20 a piece,30 CDs at $15 a piece,and 8 shirts at $20 a piece.If last year's index was 100,this year's index is

A decrease in the labour force participation rate