Question 1

Prices have been rising 6 percent a year for twenty years.The nominal rate of interest is 12 percent.The real rate of interest is

Accepted Answer

A) 4 percent. 
B) 6 percent. 
C) 10 percent. 
D) 12 percent. 
A) 4 percent. 
B) 6 percent. 
C) 10 percent. 
D) 12 percent.

Question 2

What are the three unemployment categories used by the Statistics Canada to determine whether an individual is unemployed or not?

Accepted Answer

1.Not working,but making specific effort

Question 3

If the actual inflation rate exceeds the anticipated inflation rate,then the real rate of interest

Accepted Answer

A) is negative. 
B) is less than the nominal rate of interest. 
C) equals the nominal rate of interest. 
D) is more than the nominal rate of interest. 
A) is negative. 
B) is less than the nominal rate of interest. 
C) equals the nominal rate of interest. 
D) is more than the nominal rate of interest.

Question 4

Hidden unemployment describes individuals who

Accepted Answer

A) goof-off on the job. 
B) are employed by the federal government. 
C) would like to work,but are discouraged from looking for a job. 
D) do voluntary work. 
A) goof-off on the job. 
B) are employed by the federal government. 
C) would like to work,but are discouraged from looking for a job. 
D) do voluntary work.

Question 5

If the actual inflation rate is less than the anticipated inflation rate,then the real rate of interest

Accepted Answer

A) is negative. 
B) is less than the nominal rate of interest. 
C) equals the nominal rate of interest. 
D) is more than the nominal rate of interest. 
A) is negative. 
B) is less than the nominal rate of interest. 
C) equals the nominal rate of interest. 
D) is more than the nominal rate of interest.

Question 6

Structural unemployment results

Accepted Answer

A) when a reduction in consumer income reduces demand for products. 
B) when individuals enter the labour market in June following graduation. 
C) when workers face layoffs following a decrease in economic activity. 
D) when consumers' demand for a product falls so dramatically that workers specializing in the production of that product find themselves out of work. 
A) when a reduction in consumer income reduces demand for products. 
B) when individuals enter the labour market in June following graduation. 
C) when workers face layoffs following a decrease in economic activity. 
D) when consumers' demand for a product falls so dramatically that workers specializing in the production of that product find themselves out of work.

Question 7

A new Pentium computer costs less than a 486 computer when it first came out three years earlier.The real price of personal computers over the last three years has

Accepted Answer

A) decreased. 
B) increased. 
C) stayed the same. 
D) changed,but there is not enough information to tell in which direction. 
A) decreased. 
B) increased. 
C) stayed the same. 
D) changed,but there is not enough information to tell in which direction.

Question 8

Assume a ten percent increase in the price of all goods in 1991;if the base year is 1990,then the price index in 1991 will be

Accepted Answer

A) 90. 
B) 110. 
C) 200. 
D) 1100. 
A) 90. 
B) 110. 
C) 200. 
D) 1100.

Question 9

Describe the pattern of business cycles.Explain fully and comment on the position of the Canadian economy at the present time.

Accepted Answer

The cycles are:expansion,peak,contractio

Question 10

Debtors gain and creditors lose when

Accepted Answer

A) the anticipated rate of inflation is greater than the actual rate of inflation. 
B) the anticipated rate of inflation is less than the actual rate of inflation. 
C) the anticipated rate of inflation is the same as the unanticipated rate of inflation. 
D) the unanticipated rate of inflation is zero. 
A) the anticipated rate of inflation is greater than the actual rate of inflation. 
B) the anticipated rate of inflation is less than the actual rate of inflation. 
C) the anticipated rate of inflation is the same as the unanticipated rate of inflation. 
D) the unanticipated rate of inflation is zero.

Question 11

The duration of unemployment tends to

Accepted Answer

A) increase when business activity goes into a downturn. 
B) increase when employment increases. 
C) increase when the labour force shrinks. 
D) stay consistently the same over long periods of time. 
A) increase when business activity goes into a downturn. 
B) increase when employment increases. 
C) increase when the labour force shrinks. 
D) stay consistently the same over long periods of time.

Question 12

The statistical measure of the weighted average of prices of goods purchased by an urban wage earner is called the

Accepted Answer

A) Producer Price Index. 
B) GDP deflator. 
C) Consumer Price Index. 
D) Urban Wage Index. 
A) Producer Price Index. 
B) GDP deflator. 
C) Consumer Price Index. 
D) Urban Wage Index.

Prices have been rising 6 percent a year for twenty years.The nominal rate of interest is 12 percent.The real rate of interest is

What are the three unemployment categories used by the Statistics Canada to determine whether an individual is unemployed or not?

If the actual inflation rate exceeds the anticipated inflation rate,then the real rate of interest

Hidden unemployment describes individuals who

If the actual inflation rate is less than the anticipated inflation rate,then the real rate of interest

Structural unemployment results

A new Pentium computer costs less than a 486 computer when it first came out three years earlier.The real price of personal computers over the last three years has

Assume a ten percent increase in the price of all goods in 1991;if the base year is 1990,then the price index in 1991 will be

Describe the pattern of business cycles.Explain fully and comment on the position of the Canadian economy at the present time.

Debtors gain and creditors lose when

The duration of unemployment tends to

The statistical measure of the weighted average of prices of goods purchased by an urban wage earner is called the

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

Prices have been rising 6 percent a year for twenty years.The nominal rate of interest is 12 percent.The real rate of interest is

What are the three unemployment categories used by the Statistics Canada to determine whether an individual is unemployed or not?

If the actual inflation rate exceeds the anticipated inflation rate,then the real rate of interest

Hidden unemployment describes individuals who

If the actual inflation rate is less than the anticipated inflation rate,then the real rate of interest

Structural unemployment results

A new Pentium computer costs less than a 486 computer when it first came out three years earlier.The real price of personal computers over the last three years has

Assume a ten percent increase in the price of all goods in 1991;if the base year is 1990,then the price index in 1991 will be

Describe the pattern of business cycles.Explain fully and comment on the position of the Canadian economy at the present time.

Debtors gain and creditors lose when

The duration of unemployment tends to

The statistical measure of the weighted average of prices of goods purchased by an urban wage earner is called the

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