Question 1

The value of the basket of products and services for the base year of the Consumer Price Index is always 100.

Accepted Answer

A) True 
 B)False

Question 2

East Westfalia reported these unemployment rates for 2010: cyclical 3 percent, seasonal 2 percent, frictional 4 percent, and structural 6 percent. The official unemployment rate is 12 percent.

Accepted Answer

A) True 
 B)False

Question 3

Consumers in Studentland buy Pizza and Pepsi - nothing else. Prices and quantities are shown in the table below.   Spending in 2015 was

Accepted Answer

A)  720. 
B)  1,000. 
C)  1,200. 
D)  600. 
E)  120. 
A)  720. 
B)  1,000. 
C)  1,200. 
D)  600. 
E)  120.

Question 4

When expensive new products like the iPad are introduced, the CPI increases.

Accepted Answer

A) True 
 B)False

Question 5

If a very small town has 25 people unemployed and 75 people employed, the unemployment rate is

Accepted Answer

A)  25 percent. 
B)  20 percent. 
C)  40 percent. 
D)  33 percent. 
E)  50 percent. 
A)  25 percent. 
B)  20 percent. 
C)  40 percent. 
D)  33 percent. 
E)  50 percent.

Question 6

The main idea of the Phillips Curve is that the higher the

Accepted Answer

A)  inflation rate, the lower is stagflation. 
B)  unemployment rate, the lower is stagflation. 
C)  unemployment rate, the lower is real GDP. 
D)  inflation rate, the lower is real GDP. 
E)  unemployment rate, the lower is the inflation rate. 
A)  inflation rate, the lower is stagflation. 
B)  unemployment rate, the lower is stagflation. 
C)  unemployment rate, the lower is real GDP. 
D)  inflation rate, the lower is real GDP. 
E)  unemployment rate, the lower is the inflation rate.

Question 7

The quantity theory of money suggests that a 20 percent decrease in the money supply causes a 20 percent decrease in nominal GDP.

Accepted Answer

A) True 
 B)False

Question 8

Expectations of either inflation or deflation can create vicious spirals and damaging results for the economy.

Accepted Answer

A) True 
 B)False

Question 9

According to the quantity theory of money, increases in money lead to increases in

Accepted Answer

A)  nominal GDP. 
B)  velocity. 
C)  potential GDP. 
D)  real GDP. 
E)  unemployment. 
A)  nominal GDP. 
B)  velocity. 
C)  potential GDP. 
D)  real GDP. 
E)  unemployment.

Question 10

The natural rate of unemployment is

Accepted Answer

A)  the rate where unemployment equals 0 percent. 
B)  same as cyclical unemployment. 
C)  the rate where cyclical unemployment equals 0 percent. 
D)  the rate where cyclical unemployment equals 6 percent. 
E)  none of the above answers. 
A)  the rate where unemployment equals 0 percent. 
B)  same as cyclical unemployment. 
C)  the rate where cyclical unemployment equals 0 percent. 
D)  the rate where cyclical unemployment equals 6 percent. 
E)  none of the above answers.

Question 11

Structural unemployment is a problem that policymakers need to address.

Accepted Answer

A) True 
 B)False

Question 12

Supply shocks directly affect businesses' costs, prices, and supply.

Accepted Answer

A) True 
 B)False

Question 13

Energy price increases are a negative supply shock.

Accepted Answer

A) True 
 B)False

Question 14

Tiago graduated, and is actively looking for work. Tiago is considered to be unemployed.

Accepted Answer

A) True 
 B)False

Question 15

Compared to the inflation rate calculated using the Consumer Price Index (CPI), the core inflation rate

Accepted Answer

A)  measures the prices of all products and services, not just those in the CPI basket. 
B)  allows quantities to change in the basket of products and services. 
C)  is always higher. 
D)  is always lower. 
E)  is none of the above. 
A)  measures the prices of all products and services, not just those in the CPI basket. 
B)  allows quantities to change in the basket of products and services. 
C)  is always higher. 
D)  is always lower. 
E)  is none of the above.

Question 16

Anyl graduated from high school and is travelling in Europe. Statistics Canada classifies him as

Accepted Answer

A)  underutilized. 
B)  discouraged. 
C)  unemployed. 
D)  retired. 
E)  not in the labour force. 
A)  underutilized. 
B)  discouraged. 
C)  unemployed. 
D)  retired. 
E)  not in the labour force.

Question 17

The cost-push story of inflation is not consistent with the original Phillips Curve.

Accepted Answer

A) True 
 B)False

Question 18

The Phillips Curve identifies an inverse relationship. Another inverse relationship familiar to economics students is between

Accepted Answer

A)  wages paid and hours worked. 
B)  money supply and average prices. 
C)  price and quantity demanded. 
D)  export spending and gross domestic product. 
E)  price and quantity supplied. 
A)  wages paid and hours worked. 
B)  money supply and average prices. 
C)  price and quantity demanded. 
D)  export spending and gross domestic product. 
E)  price and quantity supplied.

Question 19

When the inflation rate is 3 percent and the nominal interest rate is 5 percent, the real interest rate is

Accepted Answer

A)  2 percent. 
B)  8 percent. 
C)  0.6 percent. 
D)  1.6 percent. 
E)  7 percent. 
A)  2 percent. 
B)  8 percent. 
C)  0.6 percent. 
D)  1.6 percent. 
E)  7 percent.

Question 20

According to the quantity theory of money, an increase in the quantity of money

Accepted Answer

A)  increases average prices. 
B)  increases velocity. 
C)  increases real GDP. 
D)  does all of the above. 
E)  does none of the above. 
A)  increases average prices. 
B)  increases velocity. 
C)  increases real GDP. 
D)  does all of the above. 
E)  does none of the above.

The value of the basket of products and services for the base year of the Consumer Price Index is always 100.

East Westfalia reported these unemployment rates for 2010: cyclical 3 percent, seasonal 2 percent, frictional 4 percent, and structural 6 percent. The official unemployment rate is 12 percent.

Consumers in Studentland buy Pizza and Pepsi - nothing else. Prices and quantities are shown in the table below. Spending in 2015 was

When expensive new products like the iPad are introduced, the CPI increases.

If a very small town has 25 people unemployed and 75 people employed, the unemployment rate is

The main idea of the Phillips Curve is that the higher the

The quantity theory of money suggests that a 20 percent decrease in the money supply causes a 20 percent decrease in nominal GDP.

Expectations of either inflation or deflation can create vicious spirals and damaging results for the economy.

According to the quantity theory of money, increases in money lead to increases in

The natural rate of unemployment is

Structural unemployment is a problem that policymakers need to address.

Supply shocks directly affect businesses' costs, prices, and supply.

Energy price increases are a negative supply shock.

Tiago graduated, and is actively looking for work. Tiago is considered to be unemployed.

Compared to the inflation rate calculated using the Consumer Price Index (CPI), the core inflation rate

Anyl graduated from high school and is travelling in Europe. Statistics Canada classifies him as

The cost-push story of inflation is not consistent with the original Phillips Curve.

The Phillips Curve identifies an inverse relationship. Another inverse relationship familiar to economics students is between

When the inflation rate is 3 percent and the nominal interest rate is 5 percent, the real interest rate is

According to the quantity theory of money, an increase in the quantity of money

Whats in Economics for You Scarcity, Opportunity Cost, Trade, and Models

Making Smart Choices: the Law of Demand

Show Me the Money: the Law of Supply

Coordinating Smart Choices: Demand and Supply

Are Your Smart Choices Smart for All Macroeconomics and Microeconomics

Up Around the Circular Flow: Gdp, Economic Growth, and Business Cycles

Skating to Where the Puck Is Going: Aggregate Supply and Aggregate Demand

Money Is for Lunatics: Demanders and Suppliers of Money

Trading Dollars for Dollars Exchange Rates and Payments With the Rest of the World

Steering Blindly Monetary Policy and the Bank of Canada

Spending Others Money: Fiscal Policy, Deficits, and National Debt

Are Sweatshops All Bad Globalization and Trade Policy

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Exam 7: Costs of Not Working and Living: Unemployment and Inflation

The value of the basket of products and services for the base year of the Consumer Price Index is always 100.

East Westfalia reported these unemployment rates for 2010: cyclical 3 percent, seasonal 2 percent, frictional 4 percent, and structural 6 percent. The official unemployment rate is 12 percent.

Consumers in Studentland buy Pizza and Pepsi - nothing else. Prices and quantities are shown in the table below. Spending in 2015 was

When expensive new products like the iPad are introduced, the CPI increases.

If a very small town has 25 people unemployed and 75 people employed, the unemployment rate is

The main idea of the Phillips Curve is that the higher the

The quantity theory of money suggests that a 20 percent decrease in the money supply causes a 20 percent decrease in nominal GDP.

Expectations of either inflation or deflation can create vicious spirals and damaging results for the economy.

According to the quantity theory of money, increases in money lead to increases in

The natural rate of unemployment is

Structural unemployment is a problem that policymakers need to address.

Supply shocks directly affect businesses' costs, prices, and supply.

Energy price increases are a negative supply shock.

Tiago graduated, and is actively looking for work. Tiago is considered to be unemployed.

Compared to the inflation rate calculated using the Consumer Price Index (CPI), the core inflation rate

Anyl graduated from high school and is travelling in Europe. Statistics Canada classifies him as

The cost-push story of inflation is not consistent with the original Phillips Curve.

The Phillips Curve identifies an inverse relationship. Another inverse relationship familiar to economics students is between

When the inflation rate is 3 percent and the nominal interest rate is 5 percent, the real interest rate is

According to the quantity theory of money, an increase in the quantity of money

Whats in Economics for You Scarcity, Opportunity Cost, Trade, and Models

Making Smart Choices: the Law of Demand

Show Me the Money: the Law of Supply

Coordinating Smart Choices: Demand and Supply

Are Your Smart Choices Smart for All Macroeconomics and Microeconomics

Up Around the Circular Flow: Gdp, Economic Growth, and Business Cycles

Skating to Where the Puck Is Going: Aggregate Supply and Aggregate Demand

Money Is for Lunatics: Demanders and Suppliers of Money

Trading Dollars for Dollars Exchange Rates and Payments With the Rest of the World

Steering Blindly Monetary Policy and the Bank of Canada

Spending Others Money: Fiscal Policy, Deficits, and National Debt

Are Sweatshops All Bad Globalization and Trade Policy

Filters