Mega Deck Flashcards
1
Q
A
2
Q
B
A
Other things being equal, a rise in the domestic price level
3
Q
B
A
Other things being equal, a fall in the domestic price level
4
Q
D
A
Other things being equal, an exogenous rise in the domestic
5
Q
B
A
Other things being equal, when the domestic price level fall
6
Q
A
A
Other things being equal, when the domestic price level rise
7
Q
B
A
Consider a simple macro model with a given price level and d
8
Q
C
A
Other things being equal, when the price level rises, the re
9
Q
B
A
An exogenous fall in the domestic price level causes an incr
10
Q
D
A
Consider a simple macro-model with demand-determined output.
11
Q
C
A
Consider a simple macro model with demand-determined output.
12
Q
E
A
Consider a simple macro model with demand-determined output.
13
Q
A
A
Suppose there is an exogenous increase in the domestic price
14
Q
A
A
Other things being equal, a rise in the price level will imp
15
Q
C
A
Other things being equal, an exogenous increase in the price
16
Q
E
A
Which of the following events would cause the AE function to
17
Q
A
A
Other things being equal, as the price level rises exogenous
18
Q
D
A
Other things being equal, as the price level falls exogenous
19
Q
C
A
The AD curve relates the price level to which of the followi
20
Q
B
A
All points on an economys AD curveA) correspond to a partic
21
Q
D
A
In a macro model with a constant price level, an increase in
22
Q
E
A
In a macro model with a constant price level, an increase in
23
Q
A
A
On a graph that shows the derivation of the AD curve, an exo
24
Q
A
A
Which of the following would likely cause an upward parallel
25
E
Which of the following would likely cause a downward shift i
26
B
Which of the following would likely cause a downward paralle
27
B
Refer to Figure 23-1. Assume the economy is initially in equ
28
D
Refer to Figure 23-1. Assume the economy is initially in equ
29
C
Refer to Figure 23-1. Assume the economy is initially in equ
30
E
Refer to Figure 23-1. Assume the economy is initially in equ
31
A
Refer to Figure 23-1. Assume the economy is initially in equ
32
D
Refer to Figure 23-1. Assume the economy is initially in equ
33
A
Refer to Figure 23-1. Assume the economy is initially in equ
34
C
Refer to Figure 23-1. Assume the economy is initially in equ
35
D
Consider a simple macro model with a given price level and d
36
B
Consider the relationship between the AE curve and the AD cu
37
A
Consider the relationship between the AE curve and the AD cu
38
A
A leftward shift of the aggregate demand (AD) curve could re
39
E
A leftward shift in the aggregate demand (AD) curve could re
40
D
A leftward shift of the aggregate demand (AD) curve could re
41
B
A rightward shift in the aggregate demand (AD) curve could r
42
C
Consider the basic AD/AS macro model. The simple multiplier
43
C
Consider the basic AD/AS model in the short run. When there
44
B
One of the reasons why the aggregate demand (AD) curve slope
45
B
One of the reasons why the aggregate demand (AD) curve slope
46
A
The AD curve shows the relationship betweenA) the price leve
47
B
Consider the relationship between the AE curve and the AD cu
48
B
Consider the relationship between the AE curve and the AD cu
49
D
Consider the AD/AS model. Suppose there is an increase in au
50
A
Other things being equal, a higher marginal propensity to sp
51
B
Other things being equal, a closed economy will have a \_\_\_\_\_
52
A
Other things being equal, an economy with a higher net tax r
53
A
Consider two economies, A and B. Economy A has a marginal pr
54
B
Consider two economies, A and B. Economy A has a marginal pr
55
C
Consider two economies, A and B. Economy A has a marginal pr
56
B
Consider two economies, A and B. Economy A has a marginal pr
57
D
Consider two economies, A and B. Economy A has a marginal pr
58
D
Consider the simple multiplier when the price level is const
59
E
Aggregate supply refers to theA) decisions of firms to decre
60
D
The economys aggregate supply (AS) curve shows the relation
61
C
The economys aggregate supply (AS) curve shows the relation
62
C
The aggregate supply (AS) curve is drawn with which variable
63
A
The aggregate supply curve relates the price level to the qu
64
B
In the short run, the aggregate supply curve has a positive
65
E
In building a macro model with an AS curve, it is assumed th
66
C
The economys aggregate supply (AS) curve is assumed to slop
67
D
The economys aggregate supply curve is drawn under two main
68
A
A decrease in aggregate supply in the short run is A) shown
69
C
A decrease in aggregate supply in the short run isA) reflect
70
D
Consider the basic AD/AS model. If there is a decrease in th
71
D
Consider the basic AD/AS model. If major labour unions succe
72
C
A movement along the economys AS curve could be caused by a
73
E
The economys AS curve will shift upward in the short run if
74
A
Other things being equal, the economys AS curve will shift
75
B
Other things being equal, the economys AS curve will shift
76
B
A rightward shift in the economys AS curve implies thatA) a
77
A
A leftward shift in the economys AS curve implies thatA) at
78
C
The economys AS curve is often assumed to be relatively fla
79
C
Consider the economys aggregate supply curve. Other things
80
E
Consider the economys aggregate supply curve. Other things
81
B
Consider the basic AD/AS model. When wage rates rise faster
82
D
Suppose there is a drop in the price of an important factor
83
C
Consider the basic AD/AS model. Suppose that a rising percen
84
B
Consider the basic AD/AS model. Suppose that high-school gra
85
E
Consider the basic AD/AS model. If their unit costs rise as
86
D
The aggregate supply curve will shift as a result of a chang
87
C
The aggregate supply curve tends to be relatively steep when
88
C
The aggregate supply curve is usually assumed to get progres
89
D
Consider the basic AD/AS model. If firms unit costs remaine
90
C
The concept of demand-determined output requires \_\_\_\_\_\_\_\_
91
B
Refer to Figure 23-2. Which of the following events could ca
92
E
Refer to Figure 23-2. Which of the following events could ca
93
C
Refer to Figure 23-2. The shift from to shown in the dia
94
C
Macroeconomic equilibrium is described as the combination of
95
B
Consider the nature of macroeconomic equilibrium. If, at a p
96
B
Consider the nature of macroeconomic equilibrium. If, at a p
97
A
If the AS curve is vertical and there is a decrease in aggre
98
B
Consider the AD/AS model. An increase in government purchase
99
D
Consider the basic AD/AS model. Real GDP is demand determine
100
B
Over the horizontal range of the economys AS curve (assumin
101
E
If the economys AS curve is upward sloping, a negative shoc
102
E
Which of the following will cause a negative aggregate deman
103
C
Refer to Figure 23-3. Which of the following statements best
104
D
Refer to Figure 23-3. Which of the following statements best
105
C
Refer to Figure 23-3. Suppose the price level in Economy A i
106
C
Aggregate demand shocks have a large effect on real GDP and
107
C
If the economys AS curve is upward sloping, a positive aggr
108
B
Consider the basic AD/AS model with an upward-sloping AS cur
109
C
) If the economys AS curve is very steep and there is a neg
110
B
Consider the basic AD/AS model. Suppose firms are currently
111
A
Suppose firms are currently producing output at a level beyo
112
E
In the basic AD/AS model, the effect of an aggregate demand
113
A
Which of the following would cause a positive aggregate dema
114
C
If the economy is in macroeconomic equilibrium with a vertic
115
E
If the economy is in macroeconomic equilibrium with a vertic
116
A
Aggregate demand (AD) shocks have a smaller effect on real G
117
D
Which of the following represents a positive aggregate suppl
118
D
Which of the following will cause a positive aggregate suppl
119
D
Aggregate supply shocks cause the price level and real GDP t
120
E
Consider the basic AD/AS macro model. A rise in an input pri
121
B
Consider the basic AD/AS model. A rise in an input price lik
122
D
Consider the AD/AS macro model. Suppose there is an increase
123
E
Consider the AD/AS model. Suppose there is a decrease in agg
124
E
Consider the following news headline: World commodity price
125
B
Consider the following news headline: Governments plan mass
126
D
Consider the following news headline: Information technolog
127
A
Consider the following news headline: Threat of widespread
128
E
Consider the following two headlines appearing in the same d
129
C
Suppose the economy is hit by a shock and we observe that th
130
E
Refer to Figure 23-4. Suppose the Canadian economy is initia
131
B
If the economys AS curve is completely horizontal, the mult
132
D
When the economys AS curve is positively sloped, the multip
133
D
If the economys AS curve is vertical, the multiplier in the
134
A
Suppose the government embarks on an infrastructure program,
135
B
Consider the AD/AS model in which the price level varies. In
136
C
Refer to Figure 23-5. Suppose that an increase in government
137
B
Refer to Figure 23-5. Suppose that an increase in government
138
A
Refer to Figure 23-5. Suppose that an increase in government
139
D
Refer to Figure 23-5. Suppose that an increase in autonomous
140
C
Refer to Figure 23-5. Suppose that an increase in autonomous
141
B
Refer to Figure 23-5. Suppose that an increase in autonomous
142
E
49) Refer to Figure 23-3. Which of the two economies, A or B
143
B
Refer to Figure 23-3. Which of the following statements corr
144
C
Which of the following are the defining assumptions of the s
145
D
Which of the following are the defining assumptions of the l
146
D
In macroeconomic analysis, the assumption that potential out
147
D
Which of the following is a defining assumption of the AD/AS
148
D
In the basic AD/AS model, which of the following is a defini
149
E
Which of the following is a defining assumption of the AD/AS
150
D
When we study the adjustment process in macroeconomics, what
151
C
When we study the adjustment process in macroeconomics, we a
152
A
The economys output gap is defined as theA) difference betw
153
A
Which of the following best describes the concept of potenti
154
A
An inflationary output gap occurs whenA) actual GDP exceeds
155
C
An inflationary output gap implies thatA) the demand for all
156
A
A recessionary output gap implies that A) the demand for all
157
B
An inflationary output gap would generate which of the follo
158
D
An inflationary output gap is characterized byA) falling pri
159
E
A recessionary output gap is characterized byA) rising price
160
D
Which of the following will occur as part of the automatic a
161
E
Which of the following would occur as part of the automatic
162
B
If the short-run macroeconomic equilibrium occurs with real
163
C
If the short-run macroeconomic equilibrium occurs with real
164
C
If wages rise faster than increases in labour productivity,
165
A
A common assumption among macroeconomists is that when real
166
B
A common assumption among macroeconomists is that when real
167
C
If the economy is experiencing an inflationary output gap, t
168
D
If an economy is experiencing neither a recessionary gap nor
169
A
Refer to Figure 24-1. If the economy is currently in a short
170
A
Refer to Figure 24-1. If the economy is currently producing
171
B
Refer to Figure 24-1. If the economy is currently producing
172
D
Refer to Figure 24-2. If the economy is currently in a short
173
A
Refer to Figure 24-2. Suppose the economy is in equilibrium
174
C
The Phillips curve describes the relationship betweenA) aggr
175
D
The Phillips curve provides a theoretical link betweenA) the
176
C
Which of the following describes the distinction between the
177
C
If the economy in the short run is experiencing a recessiona
178
E
Which of the following statements about output gaps is true?
179
B
Consider the basic AD/AS diagram. The vertical line at Y\* sh
180
A
As the macro economy adjusts from the short run to the long
181
B
Following any AD or AS shock, economists typically assume th
182
C
Refer to Table 24-1. Which of the economies is operating at
183
D
Refer to Table 24-1. Which of the economies are experiencing
184
C
Refer to Table 24-1. Which of the following statements best
185
C
Refer to Table 24-1. Consider Economy E. Which of the follow
186
D
Refer to Table 24-1. How is the adjustment asymmetry demonst
187
B
Refer to Table 24-1. Which of the following statements expla
188
A
Refer to Table 24-1. In which economy is there the most unus
189
D
Suppose the economy is initially in a long-run macroeconomic
190
C
Suppose that the economy is initially in a long-run macroeco
191
A
Suppose that the economy is initially in a long-run macroeco
192
B
Suppose that the economy is initially in a long-run macroeco
193
D
Suppose the following conditions are present in the economy:
194
C
Suppose the following conditions are present in the economy:
195
C
Consider the AD/AS macro model. An important asymmetry in th
196
E
Consider the AD/AS macro model. The wage-adjustment process
197
E
Consider the AD/AS macro model. An important asymmetry in th
198
B
An economy may not quickly and automatically eliminate a rec
199
C
An adjustment asymmetry in aggregate supply is A) the conc
200
C
Consider the AD/AS macro model. A permanent demand shock tha
201
C
Consider an AD/AS model in long-run equilibrium. An output g
202
C
Consider an economy with a relatively steep AS curve. If the
203
E
Consider an economy with a relatively steep AS curve. If the
204
C
Suppose Canadas economy is in a long-run equilibrium with r
205
A
Suppose Canadas economy is in a long-run equilibrium with r
206
E
Consider the basic AD/AS macro model in long-run equilibrium
207
A
Consider the basic AD/AS macro model in long-run equilibrium
208
C
Consider the basic AD/AS macro model in long-run equilibrium
209
E
Suppose Canadas economy is in a long-run equilibrium with r
210
D
Suppose Canadas economy is in a long-run equilibrium with r
211
A
Refer to Figure 24-3. A negative shock to the economy shifts
212
A
Refer to Figure 24-3. A negative shock to the economy shifts
213
D
Refer to Figure 24-3. Which of the following events could ha
214
B
Refer to Figure 24-3. After the negative aggregate demand sh
215
B
Refer to Figure 24-3. Following the negative AD shock shown
216
C
Consider the AD/AS model, and suppose that the economy begin
217
A
Consider the AD/AS model and suppose the economy begins at p
218
A
What is meant by the term stagflation?A) the combination o
219
D
In the basic AD/AS macro model, which of the following event
220
D
In the basic AD/AS macro model, which of the following event
221
C
Consider the basic AD/AS macro model in long-run equilibrium
222
C
Refer to Figure 24-4. The initial effect of the positive AS
223
D
Refer to Figure 24-4. The positive aggregate supply shock sh
224
E
Refer to Figure 24-4. After the positive aggregate supply sh
225
E
Refer to Figure 24-4. Following the positive AS shock shown
226
C
Consider the basic AD/AS macro model, initially in a long-ru
227
E
The curve that is sometimes called the long-run aggregate s
228
A
What economists sometimes call the long-run aggregate suppl
229
B
What is sometimes called the long-run aggregate supply curv
230
C
The long-run aggregate supply curve, vertical at Y\*, shows
231
D
Consider the AD/AS model. In the long run, after factor pric
232
A
Consider the AD/AS model. Since output in the long run is de
233
D
Consider the AD/AS model after factor prices have fully adju
234
D
Consider the AD/AS model after factor prices have fully adju
235
C
Refer to Figure 24-5. The economy is not in long-run equilib
236
E
Refer to Figure 24-5. Following a positive demand shock that
237
C
Refer to Figure 24-5. If the economy is currently in equilib
238
B
Consider the AD/AS macro model. The study of short-run cycli
239
C
In the long run in the AD/AS macro model we can say thatA) b
240
C
Suppose the economy begins in a long-run equilibrium with Y
241
D
Consider the AD/AS macro model. The main source of increases
242
A
In the basic AD/AS macro model, permanent increases in real
243
C
The study of the long run in macroeconomics focuses A) on ch
244
C
When an economy experiences sustained growth in real GDP,A)
245
A
Which of the following provides the best explanation for why
246
E
Refer to Figure 24-1. If the economy is currently producing
247
D
Refer to Figure 24-1. Suppose the economy is currently in a
248
B
Refer to Figure 24-2. Suppose the economy is in a short-run
249
A
Refer to Figure 24-2. Suppose the economy is in a short-run
250
E
Refer to Figure 24-2. Suppose the economy is in a short-run
251
D
One advantage of using expansionary fiscal policy rather tha
252
D
Consider the basic AD/AS model, and suppose there is a negat
253
A
Consider the basic AD/AS model, and suppose there is a negat
254
E
Suppose the economy has a high level of unemployment and a l
255
D
) Refer to Figure 24-6. If the government takes no action to
256
B
Refer to Figure 24-6. The government could close the existin
257
D
Consider Figure 24-7. At the initial short-run equilibrium,
258
C
Refer to Figure 24-7. If the government takes no action to c
259
A
Refer to Figure 24-7. The government could close the existin
260
A
Suppose the economy is experiencing an inflationary gap in t
261
D
As a global recession began in late 2008, the governments of
262
B
Consider the global recession that began in late 2008. In te
263
A
Income taxes in Canada can be considered to be automatic sta
264
D
An important automatic fiscal stabilizer in Canada is A) the
265
E
Automatic fiscal stabilizers are most helpful inA) making di
266
C
Automatic fiscal stabilization in the economy refers toA) t
267
D
Net tax revenues that rise with national income act as an au
268
E
Consider the simplest macro model with demand-determined out
269
C
Consider a simple macro model with demand-determined output.
270
E
Consider a simple macro model with demand-determined output.
271
C
Automatic fiscal stabilizers ________ the impact of demand o
272
E
Suppose the government implements a permanent reduction in t
273
C
The paradox of thrift refers to the understandable tendenc
274
B
In the long run, aggregate demand is ________ for determinin
275
D
The paradox of thrift does not exist in the long run because
276
B
In the basic AD/AS macro model, the paradox of thrift is o
277
E
Many economists think discretionary fiscal policy is of limi
278
B
Given current limitations, fiscal policy as a macroeconomic
279
D
Suppose the economy is experiencing a significant recessiona
280
A
Which of the following statements about fiscal policy is the
281
B
Which of the following statements about fiscal policy is the
282
E
Suppose the government had made a decision to change fiscal
283
E
An expansionary fiscal policy that takes the form of an incr
284
A
Suppose the economy is in macroeconomic equilibrium with rea
285
E
In any decision about stimulating the economy with a fiscal
286
C
The growth rate of potential output might be decreased by an
287
B
A reduction in the net tax rate might lead to an increase in
288
C
The use of government purchases (G) as a fiscal policy tool
289
D
In our macro model, the level of aggregate output is determi
290
E
Fiscal policies typically affect the short-run level of GDP
291
D
Over a long period of time, perhaps many years, changes in r
292
D
Between the years 1960 and 2014, the Canadian economy experi
293
C
In the long run, changes in average material living standard
294
B
The compounding of economic growth rates means thatA) a larg
295
A
If per capita GDP in a richer country grows at a faster annu
296
C
If GDP in a richer country grows at the same annual rate as
297
D
A common measure of a countrys level of productivity is A)
298
D
A common measure of a countrys rate of economic growth is A
299
A
Over the long term, by far the most potent force for raising
300
D
If real income grows at approximately 2% per year, the numbe
301
C
If real income grows at approximately 4% per year, the numbe
302
C
Of the variables listed below, the best measure of a nation
303
E
The theory of economic growth concentrates on the ________ o
304
A
Which of the following is the best example of the acquisitio
305
D
The four major determinants of economic growth include all o
306
C
Refer to Table 25-1. If this economy is growing at an annual
307
D
Refer to Table 25-1. If this economy is growing at an annual
308
C
Refer to Table 25-1. What is real GDP in this economy in Yea
309
A
Refer to Table 25-1. What is real GDP in this economy in Yea
310
E
Refer to Figure 25-1. Which of the following statements best
311
C
Refer to Figure 25-1. Which of the following statements abou
312
D
Refer to Figure 25-1. The area marked Area 1 representsA) th
313
B
Refer to Figure 25-1. Suppose Economy A jumps to the path of
314
A
Refer to Figure 25-1. Which of the following costs of econom
315
A
If a country transfers resources from the production of cons
316
C
One of the benefits of long-run economic growth is A) growth
317
B
The costs of long-run economic growth include: 1) declining
318
B
For a given level of technology, a more rapid rate of econom
319
D
The costs of economic growth include A) declining future liv
320
B
Long-run economic growth can help alleviate the problems of
321
C
Long-term economic growthA) is achieved only by changes in f
322
A
Consuming fewer goods today in order to invest resources in
323
D
Alleviation of poverty is more achievable in a growing econo
324
E
An important social cost of economic growth is A) the increa
325
D
Economic growth is often associated with structural change i
326
B
Consider the long-run theory of investment, saving and growt
327
B
If government policies are to be successful in enhancing a c
328
B
Consider a closed economy with real GDP in the long run of $
329
A
Which of the following equations is a correct expression for
330
D
Refer to Table 25-2. What is the level of private saving for
331
B
Refer to Table 25-2. What is the level of public saving for
332
E
Refer to Table 25-2. What is the level of national saving fo
333
C
Refer to Table 25-3. What is the level of private saving for
334
A
Refer to Table 25-3. What is the level of public saving for
335
E
Refer to Table 25-3. What is the level of national saving fo
336
D
Refer to Table 25-3. What is the level of combined budget su
337
D
Suppose the government has a budget deficit of $400. If the
338
E
Suppose the government has a budget surplus of $2 billion. I
339
A
Consider the long-run theory of investment, saving, and grow
340
E
For a given level of national income, an increase in private
341
B
An increase in the government budget surplus, everything els
342
E
Consider a closed economy in the long run. A country with a
343
B
Consider the market for financial capital for a closed econo
344
E
Which of the following statements concerning national saving
345
A
For a given level of national income, a decrease in governme
346
D
Consider the long-run theory of investment, saving, and grow
347
E
Consider the long-run theory of investment, saving and growt
348
D
Consider the market for financial capital in the long run. T
349
B
Consider the market for financial capital in the long run. T
350
C
Refer to Figure 25-2. Suppose national saving is reflected b
351
A
Refer to Figure 25-2. Suppose national saving is reflected b
352
B
Refer to Figure 25-2. Suppose national saving is reflected b
353
A
Refer to Figure 25-2. Suppose national saving is reflected b
354
E
Refer to Figure 25-2. Suppose national saving is reflected b
355
C
Refer to Figure 25-2. Suppose national saving is reflected b
356
D
Refer to Figure 25-3. Suppose the interest rate in this mark
357
C
Refer to Figure 25-3. The equilibrium interest rate in this
358
A
Refer to Figure 25-3. Suppose the interest rate in this mark
359
D
) In the long run, an increase in the demand for investment
360
C
Data from most industrialized countries show that countries
361
C
Consider the Neoclassical growth model. The effect of an inc
362
C
One important assumption of the Neoclassical growth model is
363
B
The main properties of a Neoclassical aggregate production f
364
B
The Neoclassical growth model assumes that, with a given sta
365
B
The Neoclassical growth model assumes that, with a given sta
366
C
A central assumption of the Neoclassical growth model is tha
367
C
In the Neoclassical growth model, whenever diminishing retur
368
B
In the Neoclassical growth model, decreases in the populatio
369
D
In the Neoclassical growth model, increases in the stock of
370
B
In the Neoclassical growth model, if capital and labour grow
371
C
According to the Neoclassical growth model, it is most likel
372
C
In Neoclassical growth theory, an increase in the labour for
373
B
In Neoclassical growth theory, average material living stand
374
A
In Neoclassical growth theory, increasing the amount of capi
375
E
The Neoclassical theory of economic growth led economics to
376
C
In the Neoclassical growth model, the law of diminishing mar
377
C
According to the Neoclassical growth model, which of the fol
378
C
According to the Neoclassical growth model, which of the fol
379
C
Real GDP is not a good measure of average material living st
380
B
Balanced growth of labour and capital in the Neoclassical gr
381
E
According to the Neoclassical growth theory, sustained risin
382
D
The aggregate production function shows the ________ for giv
383
A
Neoclassical growth theory is based on the assumption of \_\_\_
384
C
An aggregate production function exhibits constant returns t
385
E
An aggregate production function exhibits increasing returns
386
B
Consider the aggregate production function Y = F(K, L). If t
387
C
Consider the aggregate production function Y = F(K, L). If t
388
A
Consider an aggregate production function Y = F(K, L) that d
389
E
Refer to Table 25-4. The production function that applies to
390
A
Refer to Table 25-4. Diminishing marginal returns to labour
391
B
Refer to Table 25-4. Consider the changes shown for L, K, an
392
C
Refer to Table 25-4. Consider the changes shown for L, K, an
393
B
Refer to Table 25-4. Consider the changes shown for L, K, an
394
A
Embodied technical change is said to occur when A) older c
395
C
Consider the Neoclassical growth model. Sustained economic g
396
D
When a new personal computer is purchased to replace an old
397
C
If a country experiences growth in total factor productivit
398
C
The growth of total factor productivity, or the Solow res
399
E
An example of embodied technical change is A) education th
400
E
The Solow residual is an estimate of changes inA) economic g
401
E
Modern or new theories of long-run economic growth are bas
402
B
The new theories of economic growth emphasize that the pac
403
B
According to the new theories of economic growth, increasi
404
E
New theories of economic growth based on the idea that growt
405
C
With respect to long-run economic growth, one rationale for
406
B
According to some modern theories of long-run economic growt
407
E
In new theories of endogenous growth, increasing marginal
408
E
Compared to Neoclassical growth theory, newer endogenous gr
409
B
Consider the newer theories of economic growth. Given the ra
410
B
Modern growth theories are more optimistic than Neoclassical
411
B
Which of the following statements is true of new growth theo
412
D
One reason that investment in innovation is often considered
413
D
Consider the competing products made by Apple (iPhone) and S
414
C
Consider the significant costs to the innovators and develop
415
A
Suppose that most of the worlds population would like to ac
416
D
In 1950, when the worlds population was 2.5 billion, it was
417
B
In the early 1970s, a group called the Club of Rome publis
418
A
Economic growth allows increasing numbers of people around t
419
D
The function of money in an economy is to serve as 1) a unit
420
A
Money is commonly defined asA) a generally accepted medium o
421
E
In order to be considered money, paper currency must beA)
422
B
Doug is saving money in order to purchase a new snowboard ne
423
B
Other things being equal, a rise in the price level willA) i
424
B
Other things being equal, the purchasing power of money isA)
425
C
When you are estimating your monthly income and expenses, mo
426
C
Doug compares the unit price of chocolate bars in order to g
427
E
The major advantage of using money rather than barter is tha
428
D
The biggest disadvantage of a barter system compared to one
429
D
Which of the following is an example of the use of money as
430
A
If a majority of Canadian households and businesses refused
431
E
In order for money to be successfully used as a medium of ex
432
D
The use of money in an economy does which of the following?A
433
C
When metal coins, such as gold and silver, were used as mone
434
B
Historically, when gold and silver coins were used as money,
435
C
Greshams law predicts thatA) good money drives out bad mone
436
E
Which of the following is consistent with the predictions of
437
B
Which of the following was the most important initial step i
438
D
Suppose an economy has two types of money - gold and silver
439
A
What do we mean in our current banking system when we say th
440
C
The major problem of a currency that is fractionally backed
441
A
Most Canadians accept Canadian dollars in payment for goods
442
E
Fiat money has value because itA) can be manufactured at wil
443
D
For a country to be on a gold standard, it mustA) use gold
444
B
If most individuals accept paper currency in transactions, a
445
E
The currency that is in circulation in Canada today isA) ful
446
A
Which of the following illustrates the use of fiat money?A)
447
B
Debit cards that are issued by commercial banks can be chara
448
D
In recent years, the use of debit cards issued by commercial
449
E
Which of the following statements about deposit money is tru
450
C
The largest element of the Canadian money supply today isA)
451
B
The functions of the Bank of Canada includeA) acting as the
452
D
Basic functions of the Bank of Canada include1) acting as le
453
A
The largest component of the assets of the Bank of Canada is
454
C
The largest component of the liabilities of the Bank of Cana
455
B
In the event of a sudden loss in confidence in the ability o
456
E
Suppose the rare event occurs that a major Canadian commerci
457
B
Which of the following statements best describes the relatio
458
D
Which of the following entries would appear on the liabiliti
459
B
Commercial banks in Canada are prohibited by law fromA) acce
460
C
The financial crisis that occurred in 2007 and 2008 highligh
461
B
An example of interbank activities in the Canadian banking
462
C
The Canada Deposit Insurance Corporation (CDIC) was set up t
463
B
Which of the following entries would appear on the liabiliti
464
A
Which of the following entries would appear on the assets si
465
E
Which of the following entries would appear on the liabiliti
466
D
Refer to Table 26-1. What are the total assets on the balanc
467
D
Refer to Table 26-1. What are the total liabilities on the b
468
A
A bank run is unlikely to occur in Canada today becauseA) if
469
B
What is a bank run? A) A situation where a commercial bank i
470
C
Why is the possibility of a bank run extremely small in Cana
471
A
Canadian commercial banks maintain their reserves in the for
472
E
A commercial banks actual reserve ratio is theA) fraction o
473
C
Excess reserves for a commercial bank refer toA) any surplu
474
D
Consider a new deposit of $10 000 to the Canadian banking sy
475
A
A commercial banks target reserve ratio is theA) fraction o
476
D
If all the commercial banks in the banking system collective
477
D
Which of the following statements about reserve ratios at Ca
478
C
Without a central bank, commercial banks in Canada would pro
479
D
Commercial banks hold a fraction of their deposits in cash i
480
B
The Canadian banking system is a A) gold-reserve system.B) f
481
C
Suppose a commercial bank has a level of target reserves of
482
B
Suppose a commercial bank has a target reserve ratio of 1%,
483
C
Suppose Bank ABC has a target reserve ratio of 10%. If Bank
484
D
Suppose Bank ABC has a target reserve ratio of 2%. If Bank A
485
D
Suppose the Canadian banking system jointly has $20 million
486
E
A central bank can create money byA) selling some of its f
487
B
Which of the following examples constitutes a new deposit to
488
D
Which of the following examples constitutes a new deposit to
489
C
Refer to Table 26-2. Assume that Bank North is operating wit
490
B
Refer to Table 26-2. What are the income-earning assets for
491
D
Refer to Table 26-2. If Bank North receives a new deposit of
492
C
Refer to Table 26-2. Assume that Bank North is operating at
493
B
Refer to Table 26-2. Assume that Bank North is operating at
494
C
Refer to Table 26-3. What are the reserves held by Bank Wes
495
D
Refer to Table 26-3. Assume that Bank West is operating wit
496
D
Refer to Table 26-3. If Bank West receives a new deposit of
497
B
Refer to Table 26-3. Assume that Bank West is operating at i
498
A
Refer to Table 26-3. Assume that Bank West is operating at i
499
B
Refer to Table 26-4. Bank XYZ is immediately in a position t
500
D
Refer to Table 26-4. If Bank XYZ increases its loans to the
501
C
Refer to Table 26-4. The maximum creation of new deposits by
502
A
Refer to Table 26-4. Suppose the public decides to hold 5% o
503
B
Refer to Table 26-4. Suppose the public decides to hold 15%
504
C
Refer to Table 26-5. Bank XYZ is immediately in a position t
505
B
Refer to Table 26-5. Assume that Bank XYZ has decreased its
506
A
Refer to Table 26-5. As a result of this withdrawal from the
507
E
Consider the creation of deposit money in the banking system
508
C
Suppose you found a $100 bill that was lost for many years u
509
D
Suppose you found a $100 bill that was lost for many years u
510
E
If all the banks in the banking system collectively have $20
511
E
If all the banks in the banking system collectively have $50
512
C
Assume that Bank ABC has a target reserve ratio of 10%. If B
513
D
Suppose the excess reserves in Toronto Dominion Bank increas
514
E
Suppose the excess reserves in Toronto Dominion Bank increas
515
D
A desire by ________ has no effect on the ability of the ban
516
C
Refer to Table 26-6. Assume that Northern Banks target rese
517
B
Refer to Table 26-6. Northern Bank extends credit to its cus
518
E
Refer to Table 26-6. Owners of Northern Bank contributed mon
519
B
Refer to Table 26-6. Assume that Northern Banks target rese
520
D
Refer to Table 26-6. Assume that Northern Banks target rese
521
A
Refer to Table 26-6. Northern Bank holds cash in its vault a
522
D
Consider a new deposit of $10 000 to the Canadian banking sy
523
C
Consider a new deposit of $10 000 to the Canadian banking sy
524
E
Consider a new deposit of $100 000 to the Canadian banking s
525
E
If the Bank of Canada enters the open market and purchases $
526
A
) If the Bank of Canada enters the open market and sells $10
527
B
If the Bank of Canada enters the open market and sells $1000
528
D
If the target reserve ratio in the banking system is 20%, th
529
D
If the target reserve ratio in the banking system is 10%, th
530
E
If the target reserve ratio in the banking system is 1%, the
531
B
Suppose Bank ABC has a target reserve ratio of 10%, no exces
532
D
The expansion of deposits resulting from an injection of new
533
A
Suppose that the cash drain in the banking system increases
534
B
When discussing the banking system, a cash drain of 5% means
535
B
In reality, the reserve ratio for Canadian commercial banks
536
B
The money supply in Canada is measured using M1, M2, M2+, an
537
A
Until recently, and for many years, the common definition of
538
B
As a measure of the Canadian money supply, M2+ is defined as
539
E
The main distinction between M2 and M2+ is that M2+ also inc
540
D
The concept of near money refers toA) money substitutes su
541
D
Credit cards are considered to be money substitutes instea
542
C
Which of the following is an example of near money?A) Scot
543
D
When you pay for your $74 purchase at the grocery store with
544
C
The M2 and M2+ definitions of the money supply concentrate o
545
A
The M2++ and M3 definitions of the money supply include fina
546
D
Developments in the financial industry in recent years have
547
D
Other things being equal, bond prices A) are unaffected by c
548
B
The present value of a financial asset is A) the most someon
549
D
The present value of a bond is determined by theA) face valu
550
A
If Robert expects interest rates to fall in the near future,
551
C
When Janet expects interest rates to rise in the near future
552
B
What is the present value of a bond that pays $121.00 one ye
553
E
When i is the annual interest rate, the formula for calculat
554
D
If the annual market rate of interest is 5%, an asset that p
555
B
If the annual interest rate is 8%, an asset that promises to
556
D
If the annual interest rate is 10%, $5.00 received today has
557
E
If the annual interest rate is 3%, $10 000 received today ha
558
A
Consider a bond with a face value of $10 000, a three-year t
559
A
In a competitive financial market, the equilibrium price of
560
E
Consider a bond that promises to make coupon payments of $10
561
E
Consider a bond that promises to make coupon payments of $10
562
A
When considering the present value of any financial asset th
563
E
Consider a Government of Canada bond with a face value of $1
564
C
Consider a Hydro Quebec bond with a face value of $1000, and
565
C
If the current market price of a bond is less than the prese
566
D
An analyst is considering the purchase of a Government of Ca
567
B
An analyst is considering the purchase of a Government of Ca
568
C
In order to calculate the present value of the sum of future
569
C
When the market price of a bond falls, ceteris paribus, then
570
B
Suppose the market interest rate rises from 3% to 4%. This w
571
C
Suppose the market interest rate falls from 3% to 2%. This w
572
D
Suppose the market interest rate is stable at 4% and we see
573
D
Suppose a Government of Canada bond is being offered in fina
574
C
Suppose a Government of Canada bond is being offered in fina
575
B
Consider two bonds, Bond A and Bond B, offered for sale in t
576
C
Consider two bonds, Bond A and Bond B, offered for sale in t
577
D
Consider two bonds, Bond A and Bond B, offered for sale in t
578
A
The term demand for money usually refers to theA) aggregat
579
A
The opportunity cost of holding money rather than bonds isA)
580
C
If a person is holding money for the purchase of goods and s
581
D
The transactions demand for money arises from the fact tha
582
D
The precautionary demand for money arises from theA) fear
583
C
Other things being equal, the transactions demand for money
584
C
Consider the demand for money. If real GDP falls, other thin
585
C
Suppose an economic analyst suggests that investors should n
586
B
A firm that holds cash to avoid penalties associated with th
587
E
Among other things, people hold cash balances for which of t
588
B
Speculative demand for money arises from the desire by indiv
589
E
In the basic AD/AS macro model, it is assumed that, for any
590
E
The demand for money (MD) function defines the relationship
591
A
Refer to Figure 27-1. A rightward shift of the money demand
592
D
Refer to Figure 27-1. A leftward shift in the money demand c
593
E
Refer to Figure 27-1. Given the money demand curve, , an in
594
D
Refer to Figure 27-1. Given the money demand curve, , a dec
595
A
If there are just two assets, bonds and money, then an exces
596
B
Assume there are just two assets, money and bonds. We can ex
597
D
According to the liquidity preference theory of the rate o
598
C
If the general price level were to increase, other things be
599
C
If the annual market interest rate is 20%, the annual opport
600
E
Suppose that at a given interest rate and money supply, all
601
D
Suppose that at a given interest rate and money supply, all
602
B
Consider the demand for money curve. As we move up and to th
603
E
Ceteris paribus, a rightward shift of the money demand curve
604
C
When there is an excess demand for money balances, monetary
605
B
Consider a money market in which there is an excess supply o
606
E
Consider a money market in which there is an excess demand f
607
D
When there is an excess supply of money, monetary equilibriu
608
B
Monetary equilibrium occurs when theA) growth in the money s
609
E
If the economy is currently in monetary equilibrium, an incr
610
E
Refer to Figure 27-2. Starting at equilibrium E0, an increas
611
B
Refer to Figure 27-2. Starting at equilibrium E0, an increas
612
D
Refer to Figure 27-2. If the interest rate is i2, the subseq
613
A
Refer to Figure 27-2. If the interest rate is i1, the subseq
614
A
Refer to Figure 27-2. Suppose the market interest rate is .
615
D
Refer to Figure 27-2. Suppose the market interest rate is .
616
E
When the price level increases, ceteris paribus, it causes h
617
C
If there are just two assets, bonds and money, then an equil
618
D
How does monetary equilibrium re-establish itself when there
619
A
The linkage between changes in monetary equilibrium and chan
620
D
Other things being equal, a reduction in the money supply wi
621
E
The economys investment demand function describes theA) pos
622
A
Refer to Figure 27-3. The increase in the money supply from
623
B
Refer to Figure 27-3. The increase in desired investment exp
624
E
Refer to Figure 27-3. Part (i) of the figure shows the money
625
A
The monetary transmission mechanism can be set in motion whe
626
C
The monetary transmission mechanism describes the process by
627
D
Which one of the following statements best describes the mon
628
B
Consider monetary equilibrium and the monetary transmission
629
C
An increase in the money supply sets the monetary transmissi
630
E
A decrease in the money supply sets the monetary transmissio
631
B
Consider the monetary transmission mechanism. A disturbance
632
B
Consider monetary equilibrium and the monetary transmission
633
C
Consider monetary equilibrium and the monetary transmission
634
B
A decrease in the money supply is most likely toA) raise int
635
A
If the Bank of Canada were to increase the money supply, oth
636
D
) If the Bank of Canada were to reduce the money supply, oth
637
C
If real GDP is greater than potential GDP, the output gap co
638
A
Which of the following explanations for the negative slope o
639
D
The monetary transmission mechanism in an OPEN economy is mo
640
C
Consider the monetary transmission mechanism in an open econ
641
A
Consider the monetary transmission mechanism in an open econ
642
B
Which of the following correctly describes the way in which
643
A
Changes in the money supply in an open economy, as compared
644
E
Which of the following phenomena add a second channel to the
645
C
Consider the monetary transmission mechanism. In an open eco
646
D
Consider the monetary transmission mechanism. In an open eco
647
B
Other things being equal, a decrease in the money supply wil
648
C
If the economy is experiencing an undesired inflationary gap
649
C
The monetary transmission mechanism provides a partial expla
650
B
Which of the following is partly responsible for the negativ
651
A
Refer to Figure 27-4. The economy begins in equilibrium at E
652
B
Refer to Figure 27-4. The economy begins in equilibrium at E
653
A
Refer to Figure 27-4. The economy begins in equilibrium at E
654
C
Refer to Figure 27-5. This economy begins in equilibrium wit
655
D
Refer to Figure 27-5. This economy begins in equilibrium wit
656
A
Refer to Figure 27-5. This economy begins in equilibrium wit
657
C
Refer to Figure 27-5. This economy begins in equilibrium wit
658
C
) Refer to Figure 27-6. The famous debate from the the 1950s
659
B
Refer to Figure 27-6. The famous debate from the 1950s and 1
660
D
The view of the Classical economists regarding the neutrali
661
C
Which of the following best represents the view of the Class
662
A
According to the views of the Classical economists, if the m
663
E
Classical economists belief in the neutrality of money le
664
D
Which of the following statements best describes the differe
665
C
The long-run neutrality of money implies thatA) changes to t
666
E
The hypothesis in economics known as hysteresis is thatA) th
667
D
Suppose changes in the money supply only affected the price
668
E
Refer to Figure 27-5. This economy begins in equilibrium wit
669
B
Refer to Figure 27-5. This economy begins in equilibrium wit
670
D
Refer to Figure 27-5. This economy begins in equilibrium wit
671
E
The proposition of long-run neutrality of money is supported
672
C
Other things being equal, the steeper the AS curve for the e
673
E
Other things being equal, the flatter the AS curve for the e
674
B
Consider the monetary transmission mechanism. Other things b
675
A
Consider the monetary transmission mechanism. Other things b
676
D
Consider the monetary transmission mechanism. If the Bank of
677
D
The effectiveness of monetary policy in bringing about chang
678
D
Monetary policy can have the largest impact on desired aggre
679
C
Monetary policy will be least effective in changing aggregat
680
C
Consider the monetary transmission mechanism. A relatively s
681
C
Any central bank, including the Bank of Canada, can implemen
682
A
In general, if a central bank chooses to target the money su
683
E
In general, if a central bank chooses to target the interest
684
D
Consider the implementation of monetary policy. One difficul
685
E
If the Bank of Canada chooses to expand M2 by exactly $1 mil
686
B
In practice, it is not possible for the Bank of Canada to co
687
C
Suppose the Bank of Canada were to implement an expansionary
688
E
One reason that the Bank of Canada does not try to influence
689
B
Most central banks, including the Bank of Canada, implement
690
E
The Bank of Canada chooses to influence interest rates direc
691
B
Refer to Figure 28-1. If the Bank of Canada raises the targe
692
B
Refer to Figure 28-1. If the Bank of Canada pursues a(n) \_\_\_
693
E
Refer to Figure 28-1. If the Bank of Canadas goal is to inc
694
D
Refer to Figure 28-1. The Bank of Canada must be able to eas
695
C
Refer to Figure 28-1. One advantage of implementing monetary
696
C
In practice, the Bank of Canada uses monetary policy to redu
697
B
What is the bank rate?A) The interest rate at which the Ba
698
B
Loans from the Bank of Canada areA) made only to the Canadia
699
A
To reduce short-term market interest rates, the Bank of Cana
700
B
The Bank of Canada determines the bank rate by setting it
701
B
To raise short-term market interest rates, the Bank of Canad
702
A
In practice, the Bank of Canada implements its monetary poli
703
E
The term structure of interest rates refers toA) the general
704
C
The interest rate that commercial banks charge each other fo
705
D
The interest rate that the Bank of Canada charges commercial
706
D
Suppose the Bank of Canada announces its target for the over
707
E
The Bank of Canada establishes a rate at which they will len
708
C
Suppose the Bank of Canada lowers its target for the overnig
709
B
Suppose the Bank of Canada lowers its target for the overnig
710
D
Suppose the actual overnight interest rate is 3.5%. If the B
711
A
Suppose the actual overnight interest rate is 4%. If the Ban
712
B
The overnight interest rate is crucial to the Bank of Canada
713
C
Suppose the Bank of Canada announces its target for the over
714
B
Suppose the Bank of Canadas announced target for the overni
715
C
How does the Bank of Canada communicate its target for the o
716
E
In Canada, open-market operations areA) government actions a
717
C
The Bank of Canadas purchases and sales of government secur
718
D
If the Bank of Canada chooses to expand the money supply dir
719
E
When the Bank of Canada enters the open market and buys or s
720
E
The Bank of Canada conducts its open-market operations direc
721
C
The amount of currency in circulation in the Canadian econom
722
A
Suppose the Bank of Canada reduces its target for the overni
723
D
Suppose the Bank of Canada increases its target for the over
724
D
An expansionary monetary policy by the Bank of Canada could
725
A
An expansionary monetary policy would ________ and would eve
726
D
Suppose the Canadian economy had an inflationary gap. To dec
727
E
Suppose the Canadian economy had a recessionary gap. To incr
728
B
The best description of the cause-and-effect chain of a cont
729
A
The best description of the cause-and-effect chain of an exp
730
C
To remove an inflationary gap, the Bank of Canada would prob
731
C
To remove a recessionary gap, the Bank of Canada would proba
732
D
If there were a large and persistent recessionary gap, an ap
733
D
Changes in monetary aggregates such as M2 and M2+ can be a p
734
A
If desired investment spending is relatively sensitive to ch
735
B
If we observe that the bank rate has increased, we can concl
736
D
If we observe that the bank rate has fallen, we can conclude
737
E
If we observe a small increase in the actual overnight inter
738
E
If we observe a small decrease in the actual overnight inter
739
E
If we observe that the actual rate of CPI inflation has fall
740
E
If we observe that the actual rate of CPI inflation has incr
741
E
If we observe that short-term market interest rates have fal
742
E
The monetary transmission mechanism describes how changes in
743
D
The Bank of Canada initially implements an expansionary mone
744
B
The Bank of Canada initially implements a contractionary mon
745
E
Suppose the economy is experiencing an inflationary gap. Whi
746
A
How does the Bank of Canada set in motion the monetary trans
747
C
When the Bank of Canada reduces the interest rate we call th
748
D
When the Bank of Canada increases the interest rate we call
749
B
Most central banks accept that, in the long run, monetary po
750
D
Many central banks have established formal targets for the r
751
E
High inflation is costly to firms and individuals. Of the fo
752
C
Which of the following describes the cause of a sustained in
753
C
Given its existing policy regime of inflation targeting, t
754
D
Given its existing policy regime of inflation targeting, t
755
E
The long-run target currently used by the Bank of Canada is
756
C
Consider the following statement about inflation targeting:
757
A
Because of the volatility of food and energy prices, the Ban
758
A
One problem with focusing on the CPI when conducting monetar
759
C
Most central banks in the developed countries focus their at
760
E
High and uncertain inflation is damaging to the economy beca
761
D
It is widely accepted by economists that monetary policy is
762
C
As of 2015, the Bank of Canadas policy objective is to main
763
D
The Bank of Canadas formal policy target is \_\_\_\_\_\_\_\_. Its
764
B
In an effort to maintain inflation at its targeted level the
765
B
An example of how inflation targeting by the Bank of Canada
766
B
In the short run the Bank of Canada aims to \_\_\_\_\_\_\_\_, in an
767
B
The economic variables that the Bank of Canada tries to infl
768
C
20) Inflation targetingA) is irrelevant to the stability of
769
C
Suppose output is at its potential level and then there is a
770
D
Inflation that is fully anticipated by workers, firms, and c
771
B
Which of the following goods are included in Canadas measur
772
B
Consider a central bank that chooses to implement its moneta
773
E
Most economists now accept the proposition thatA) an ideal m
774
D
Suppose Canadian real GDP is currently equal to potential GD
775
B
Suppose Canadian real GDP is currently equal to potential GD
776
E
Which of the following events would justify the Bank of Cana
777
E
Suppose Canadian real GDP is equal to potential GDP. An appr
778
C
Suppose Canadian real GDP is equal to potential GDP. A signi
779
C
Suppose Canadian real GDP is equal to potential GDP. A signi
780
B
Suppose Canadian real GDP is equal to potential GDP. A signi
781
D
Time lags in the conduct of monetary policy can causeA) mone
782
C
Economists at the Bank of Canada estimate that time lags in
783
C
If an economist supports targeting inflation as opposed to m
784
B
If the Bank of Canada were required to gain approval for all
785
B
It might take a while before the effects of changes in monet
786
E
Suppose the Bank of Canada is criticized for implementing a
787
A
In 1980, the annual inflation rate in Canada wasA) over 12%.
788
A
In the early 1980s, the Bank of Canada contracted the rate o
789
C
During a period of renewed inflation fears in 1988, the gove
790
A
During the period of economic recovery between 1983 and 1987
791
A
The decision by the Bank of Canada and many other central ba
792
A
In the early 1980s, when the Bank of Canada was focusing its
793
A
In 1994, Gordon Thiessen was appointed as the new governor o
794
E
What is the policy response by the Bank of Canada to an infl
795
C
In 2007 and 2008, Canada was affected by the global financia
796
B
In 2007 and 2008, Canada was affected by the global financia
797
E
In 2007 and 2008, Canada was affected by the global financia
798
A
In 2007 and 2008, Canada was affected by the global financia
799
B
During the financial crisis that began in 2008 the Bank of C
800
A.
f Canadian exports of goods and services were $36 billion,
801
B.
Consider the balance-of-payments accounting information for
802
E.
Suppose that a countrys private saving is $7 million, it
803
C.
Given the information presented in the table below (billion
804
A.
If Canada has a large persistent current account surplus, t
805
D.
Consider the balance-of-payments accounting information for
806
A.
A negative value for the line item Changes in official int
807
E.
When Canada has a balance of payments deficit, this means t
808
C.
If Canadian demand for French wine increases, the supply of
809
increase; decrease; E
When the Canadian dollar appreciates, the euro price of Can
810
E.
A Canadian traveling to the United States converts $100 Can
811
A.
Suppose that a laptop computer sells in China for 4070 yuan
812
fewer; fallen; 1.25; 1.25demand and supply; supply of; demand for; fall; appreciate; an increase; appreciate; an increase; a decrease; rise; depreciate
An appreciation of the Canadian dollar means that it takes ▼
813
D.
If German demand for Canadian lumber increases, the supply
814
flexible; fixed; supply of; purchase; demand for; sell
a. If the exchange rate is determined by the equality of sup
815
a. Bb. Dis not
Many commentators are perplexed when they observe a deprecia
816
D.
In the European Union, until the introduction of the euro,
817
D.
Assume that a government begins to run a large budget surplu
818
b. 1. undervalued2. overvalued3. undervalued4. overvaluedc.Traded; lowd. are not; is not; computer RAM chips
Every few months, The Economist publishes its Big Mac In
819
not consistent; government; no
A former Canadian prime minister once suggested that Canada
820
a. Bb. Bwould
In 2015, a letter to a Canadian national newspaper argued t
821
B
Purchasing power parity theory would suggest that if the Can
822
autonomous
In our macro model, government purchases (G) is ▼ with re
823
government transfer payments; total transfer payments
G does not include ▼ government purchases of goods and servi
824
$1
The net tax rate, t, indicates the increase in tax revenues
825
disposable income
T enters the AE function only indirectly through its effect
826
budget deficit; budget surplus; G = T
If G is larger than T, there is a ▼ budget deficitbalanced
827
C.3071
Consider the governments budget balance. Suppose G = 430 a
828
A.Net tax revenues enter the AE function indirectly through its effect on disposable income.
Which of the following is correct regarding the role of gove
829
E.
Consider the governments budget balance. Suppose G=425 and
830
D.government spending and taxation.
In the 2009 and 2010 Canadian federal budgets in the midst o
831
A.directly to aggregate demand by this amount and cause an eventual change in national income equal to more than $ 5 billion.
b. Explain the effect on GDP from an increase in spending by
832
A.directly to disposable income comma only a fraction of which (determined by the MPC) will than be spent.
c. Explain the effect on GDP from a tax rebate equal in valu
833
C.increases in government spending as far as their eventual effect on national income will be larger.
d. Did the minister of finance choose to emphasize increases
834
autonomous; foreign income and international relative prices
a. In our macro model, exports (X) are ▼ dependentautonomo
835
imports; $1
The marginal propensity to import (m) indicates the increas
836
NX = X minus mY; rise; positively
The equation for the net export function (NX) is ▼ NX = X m
837
rise; downward; fall; upward
If Canadian prices rise relative to those in other countrie
838
D.a=$180, b=$60, c=-$60, d=-$180
The table below shows national income and imports. The level
839
B.at $3 comma 300
The table below shows national income and imports. The level
840
C.0.69
Consider an aggregate consumption function in a simple macro
841
D.1 comma 025
Consider a simple macro model with a constant price level an
842
B.2.78
he diagram below shows desired aggregate expenditure for a h
843
D.2.174
In a macro model where the marginal propensity to consume ou
844
C.decrease; $1.75 billion
Consider a model in which output is demand-determined. If t
845
C.the national income is demand determined.
In the aggregate expenditure model, the assumption of a con
846
A.firms are price setters.
We can expect the national income to be demand-determined w
847
D
A companys wages and salaries are part of its value added.
848
F
A companys wages and salaries are part of its value added.
849
E
In Shoetown, a rancher takes $60 worth of inputs and produ
850
B
Jodies Bakery generates a yearly revenue of $6200. Throug
851
B
The expenditure approach to measuring GDP shows that Is thi
852
B
The expenditure approach to measuring GDP shows that It is c
853
C
Which of the following transactions would not be included in
854
A
The table below includes data for a one-year period require
855
E
Suppose a government collects $12.8 billion in various tax
856
C
In 2015, the United Nations ranked Norway first on thE Huma
857
E
The table below shows the total output and prices for an eco
858
C
The table below shows total output for an economy over 2 yea
859
D
The table below shows total output for an economy over 3 yea
860
31.87%, 29.46%
Consider the following data for a hypothetical economythat p
861
4500
Max is a carpenter and his shop generates a yearly revenue o
862
7200, 10000, 4500
Aminerminerminesminesiron oreiron ore,which he sells to abl
