econ

Question 1

inflation rate using nominal and real gdp increased

Answer 1

nominal - real = inflation

Question 2

structural unemployment

Answer 2

occurs when worked are unable to find jobs due to a lack of necessarily skills, do not live when jobs are available, or decided not to work at the wage rate offered by the market

Question 3

current account

Answer 3

records exchanges of goods and services between canadians and foreigners, earnings from investment income, and net transfers (such as foreign aid)

Question 4

capital and financial account

Answer 4

records financial flows between canadian and foreigners related to investments by foreigners in canada and investments by canadians abroad

Question 5

rate of inflation

Answer 5

(current - previous)/previous

Question 6

discouraged worker

Answer 6

available and willing to work but cannot find jobs; have not made specific efforts to find a job in the previous month so are no longer park of the labour force

Question 7

overnight repo

Answer 7

used when the overnight rate is trading above the target rate; used to push interest rates down; relieves undesired upward pressure; believes inflationary pressure will fall

Question 8

determining bank rate

Answer 8

upper limit of the operating band for overnight financing

Question 9

basis points

Answer 9

100 basis points per 1%

Question 10

overnight reverse repo

Answer 10

overnight money is trading below the target; bank believes that inflationary pressures in the economy will rise; offers to borrow at the lower limit; relieve undesired downward pressure

Question 11

lynx system

Answer 11

participants are required to clear their balances every other day; will need to borrow from another lynx participant to cover a deficit; borrowed at the overnight rate