Question 1

If the price level is 100 in 2000 and 105 in 2001, the inflation rate is

Accepted Answer

A)  105%. 
B)  100%. 
C)  50%. 
D)  5%.

Question 2

The main goal of macroeconomic research is to

Accepted Answer

A)  predict how the macroeconomy will perform in the future. 
B)  analyze current macroeconomic data. 
C)  develop new data that can be used to better understand the operation of the economy. 
D)  make general statements about how the economy works.

Question 3

Which of the statements below is primarily normative in nature?

Accepted Answer

A)  There is an unequal distribution of income in Canada. 
B)  The distribution of income is more unequal in Canada than it is in Japan. 
C)  The inequality of income that exists in Canada is partly caused by an unequal distribution of wealth. 
D)  The distribution of income in Canada should be more equal than it is.

Question 4

During recessions, the unemployment rate ________ and output ________.

Accepted Answer

A)  rises; falls 
B)  rises; rises 
C)  falls; rises 
D)  falls; falls

Exam 1: Introduction to Macroeconomics

If the price level is 100 in 2000 and 105 in 2001, the inflation rate is

The main goal of macroeconomic research is to

Which of the statements below is primarily normative in nature?

During recessions, the unemployment rate and output .