New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
macroeconomic theory
Macroeconomics For Life Smart Choices For All 2nd Edition Avi J. Cohen - Solutions
Higher interest ratesa) increase inflation.b) make business investment spending more expensive.c) are a positive aggregate demand shock.d) increase bond prices.
Money indirectly affects real GDP and unemployment througha) the domestic monetary transmission mechanism.b) interest rates.c) aggregate demand.d) all of the above.
Money can directly affecta) inflation.b) real GDP.c) unemployment.d) all of the above.
Excess demand for moneya) occurs when interest rates are above the equilibrium rate.b) causes people to sell bonds.c) causes people to buy bonds.d) causes interest rates to fall.
If interest rates fall, the market price of bondsa) falls. If you sell the bond you take an unexpected loss.b) falls. If you sell the bond you make an unexpected profit.c) rises. If you sell the bond you take an unexpected loss.d) rises. If you sell the bond you make an unexpected profit.
The quantity of money supplied dependsa) only on the Bank of Canada.b) only on the chartered banks.c) only on the money market.d) on the interest rate.
Which statement about how chartered banks use their funds is true?a) Loans to businesses and consumers are riskiest and earn banks the highest interest rates.b) Loans to businesses and consumers are riskiest and earn banks the lowest interest rates.c) Government of Canada Treasury bills are
Which is most liquid?a) demand depositsb) real estatec) government bondsd) savings deposits
When you pay for lunch using your debit card, you are usinga) commodity money.b) convertible paper money.c) fiat money.d) deposit money.
The demand for money increases (the demand curve shifts rightward) whena) the quantity of money supplied decreases.b) real GDP decreases.c) average prices decrease.d) average prices increase
Which function of money seems crazy to Keynes?a) medium of exchangeb) unit of accountc) store of valued) all of the above
The double coincidence of wants isa) buyers wanting the same thing.b) sellers wanting the same thing.c) buyers and sellers wanting nothing to do with each other.d) buyers and sellers each wanting what the other has.
If you sell your bonds in order to hold more of your wealth as money, youa) get liquidity and give up interest.b) give up liquidity and earn interest.c) get liquidity and earn interest.d) give up liquidity and give up interest.
Two businesses, Dunder and Mifflin, need to reduce input costs because of economic conditions.The boss of Dunder announces, “The bad news is that I need to lay off some of you, but the good news is that wages will remain the same for those of you that I don’t lay off.” The boss of Mifflin
The “Yes — Markets Self-Adjust” camp of economists emphasizesa) animal spirits.b) that individuals and businesses make rational choices based on the best information available.c) that expectations are more important than interest rates.d) that shocks are generated from inside the economy.
Why are wages “sticky”?a) Employment contracts can’t be quickly changed.b) Workers resist having their wages reduced.c) Employers resist wage cuts because wage cuts hurt productivity.d) All of the above.
When consumers save some of their income, what can save Say’s Law?a) consumer spendingb) consumer savingc) business investment spending based on borrowed fundsd) Superman
Which shock causes stagflation?a) positive supply shockb) negative supply shockc) positive demand shockd) negative demand shock
In the Global Financial Crisis, changes in unemployment and inflation moved in the opposite directions — unemployment went up and inflation went down. This suggests the Global Financial Crisis was a result of aa) positive supply shock.b) negative supply shock.c) positive demand shock.d) negative
ING Direct was known for its slogan “save your money.” Suppose a new competitor, BLING Direct, advertises with the slogan “spend your money.” If BLING Direct’s advertisement encourages households to spend more of their income, this will be aa) positive supply shock.b) negative supply
Aggregate demand in Canada increases ifa) China buys more Canadian oil.b) aggregate demand in India decreases.c) Canada buys more Porsches from Germany.d) the value of the Canadian dollar increases.
Of all components of aggregate demand, investment spending is thea) largest component.b) most volatile, unpredictable component.c) component that is not postponable.d) least affected by interest rates and expectations.
If your income is $20 000, your taxes are $6000, and your transfer payments are $3000, then your disposable income isa) $11 000.b) $14 000.c) $17 000.d) $20 000.
Suppose that, in the future, businesses only pay high wages to people with college and university degrees. If people plan ahead and start increasing their years of schooling, this increases aggregatea) quantity demanded.b) demand.c) quantity supplied.d) supply
Aggregate supply of real GDP increases ifa) productivity increases.b) input prices increase.c) output prices increase.d) all of the above.
Business supply plans to increase inputs increase aggregatea) supply.b) demand.c) quantity supplied.d) quantity demanded.
Points inside the macroeconomic PPFa) represent unemployed inputs.b) correspond to quantities of real GDP less than potential GDP.c) represent short-run choices.d) are all of the above.
The long run is a period of timea) greater than 1 year.b) greater than 10 years.c) when the economy is at potential GDP.d) when some input prices do not change.
Economists believed there was a clear trade-off between unemployment and inflation until thea) 1950s.b) 1970s.c) 1990s.d) 2000s.
If the Phillips Curve is true, which of the following could never happen?a) Invention of the Phillips screwdriverb) Stagflationc) Stagnationd) Inflation
Which factors are fixed in the quantity theory of money?a) Money and velocityb) Velocity and real GDPc) Velocity and priced) Price and real GDP
The number of times a unit of money changes hands during a year is calleda) money supply.b) velocity.c) price.d) real GDP.
Inflation can harm those whoa) are living on fixed incomes.b) keep money under their bed.c) save money in the bank.d) all of the above.
What does the inflation rate miss?a) New productsb) Better productsc) Switches to cheaper substitutesd) All of the above
If the CPI was 120 in 2015 and 126 in 2016, then the inflation rate wasa) 5 percent, which is above the Bank of Canada’s target range for inflation.b) 5 percent, which is within the Bank of Canada’s target range for inflation.c) 20 percent, which is above the Bank of Canada’s target range for
There is a recessionary gap when the unemployment rate isa) below the natural rate.b) above the natural rate.c) at full employment.d) at the natural rate.
In the year grade 13 was eliminated in Ontario, grade 12 students and grade 13 students graduated at the same time. This increased the number of people leaving school to find jobs. What form of unemployment was likely to be unusually high that year?a) Seasonal unemploymentb) Frictional
Close to 567 000 additional people became officially unemployed between October 2008 and March 2009, and another 236 000 either gave up looking because they were discouraged, expected to be called back, or were involuntary part-timers. If the 236 000 individuals were counted as unemployed, then the
Alberta’s 2.9 percent unemployment rate in June 2007 was the lowest of any province. High labour demand and wages in Alberta encouraged unemployed workers from Newfoundland and Labrador to move to Alberta, where they found jobs. This increased thea) unemployment rate in Newfoundland and
The summer job market for post-secondary students starts in May. In May 2009, 59 000 fewer students were employed compared to a year earlier. These students’ labour force participation rate also fell over the year, from 75.2 percent to 68.6 percent. What is the correct interpretation of these
Suppose that there are 19 million people employed, 1 million unemployed, and 25 million people 15 years of age or older. Which statement is true?a) The labour force is 19 million.b) The labour force participation rate is 80 percent.c) The unemployment rate is 4 percent.d) The unemployment rate is 1
If Salma loses her job and starts looking for work, thea) number of employed increases.b) labour force increases.c) labour force decreases.d) labour force participation rate remains unchanged.
Who would be counted as unemployed?a) Sirena is a college student with no job.b) Miguel starts a new job in a week.c) Reetu stopped looking for work because she was unable to find a job.d) Rajinder is working part-time but wishes he was working full-time.
Moby goes from a stay-at-home father to a paid worker. He now earns $200 a week but pays $100 a week for day care and $100 a week for a housekeeper.Moby is better off bya) $0 and GDP increases by $0.b) $0 and GDP increases by $400.c) $200 and GDP increases by $0.d) $200 and GDP increases by $400.
Economists estimate the size of the underground economy in Canada to be between 5 and 15 percent of GDP. Which activities are part of the underground economy?a) Ecstasy salesb) Bartender tipsc) Taxi driver tipsd) All of the above
Maud and her three sons belong to a church in their hometown of Springfield. The church provides benefits to the community, such as counselling, worship services, and distribution of food and clothing to the poor. Suppose that Maud’s New Year’s resolution for 2015 is to give up her $50 000 a
An output gap isa) negative if real GDP is above potential GDP.b) negative for an inflationary gap.c) positive if real GDP equals potential GDP.d) positive for an inflationary gap
A recession occurs when real GDPa) is negative.b) growth is negative.c) growth is negative for two quarters in a row.d) growth is negative for two years in a row.
Our long-run standard of living depends most on increases ina) population growth.b) employment growth.c) productivity.d) land.
Which is not a source of economic growth?a) More workersb) Better educated workersc) Higher stock market pricesd) Growing quantities of capital equipment
If real GDP per person this year is $41 000, and real GDP per person last year was $40 000, then the economic growth rate isa) −5.0 percent.b) 2.5 percent.c) −2.5 percent.d) 5.0 percent.
When real GDP equals potential GDP,a) all inputs are fully employed.b) everyone is getting the most bang per buck for their choices.c) the whole is equal to the sum of the well-functioning parts.d) all of the above.
Which of the following increases investment spending(I) by $200?a) You are hired by the government to shuffle paper uselessly for $200.b) You are hired by Dunder-Mifflin, the business on the television show The Office, to shuffle paper uselessly for $200.c) You hire your significant other to
In the “mantra” for calculating GDP, imports are subtracted becausea) some consumption spending is on imports.b) some business investment spending is on imports.c) some government spending is on imports.d) all of the above.
GDP equals the value ofa) spending on final products and services.b) business’s outputs minus the value of intermediate products and services bought from other businesses.c) incomes earned by owners of inputs.d) all of the above.
You observe that nominal GDP increases between 2013 and 2014, and the population also increases. If the entire increase in nominal GDP was due to rising prices, thena) nominal GDP remains unchanged.b) real GDP remains unchanged.c) real GDP per person remains unchanged.d) living standards remain
To calculate nominal GDP for 1935, we use the prices ina) 1935 and quantities in 1935.b) 1935 and quantities in 2002.c) 2002 and quantities in 1935.d) 2002 and quantities in 2002.
Gross Domestic Product (GDP) is the value of all products and servicesa) that are gross-looking.b) produced in domestic households.c) produced in a country, including gross-looking products and services.d) produced in a country, excluding gross-looking products and services.
A country can increase labour force participation, which increases potential GDP, by allowing child labour and reducing vacation time. Do you think such choices should be allowed? Explain why or why not. What questions do such choices raise about the quest for profits and improved standards of
In your own words, explain how economic growth occurs and how it is measured.
In your own words, define potential GDP per person.
Which connection is not important for thinking like a macroeconomist?a) Connection between households and consumersb) Connection between input and output marketsc) Connection between Canada and the rest of the worldd) Connection between money/banks/expectations and input and output markets
Inflation is a rise in thea) average price level in the economy.b) value of money.c) quantity of products and services in the economy.d) standard of living in the economy.
When unemployment increases,a) the chance of finding a job decreases.b) GDP increases.c) the economy is growing.d) all of the above.
Unemployment matters to your personal economic success because it affects your ability toa) find a job.b) bargain for higher wages.c) bargain for better working conditions.d) do all of the above.
Monetary policy is the responsibility of thea) Bank of Montreal.b) Bank of Nova Scotia.c) Bank of Canada.d) Government of Canada.5.4 Focusing on Your Future
Transfer payments by governments to consumers includea) Employment Insurance for the unemployed.b) Old Age Security payments to seniors.c) Canadian Child Tax Benefit payments to low-income families.d) all of the above.
Purchases of new factories and equipment by businesses are calleda) stock investments.b) investment spending.c) labour costs.d) exports.
The performance of the Canadian economy is measured by the key outcome(s) ofa) GDP.b) unemployment.c) inflation.d) all of the above.
Which political party supports a hands-off approach by government?a) Liberal Party of Canadab) Conservative Party of Canadac) NDPd) Bloc Québécois
Those favouring a government hands-off approach argue that markets willa) self-adjust.b) quickly self-adjust.c) not quickly self-adjust.d) quickly-self adjust if left alone by government.
Say’s Law claims thata) supply is greater than demand.b) demand is greater than supply.c) supply creates its own demand.d) demand creates its own supply.
When everyone saves their money, total savings decrease. This is an example ofa) the Zero Sum Scenario.b) the Fallacy of Combination.c) Say’s Law.d) the Paradox of Thrift.
During the Global Financial Crisis, all of these indicators fell excepta) stock market values.b) unemployment.c) housing prices.d) asset prices.
Who is to blame for inflating the housing price bubble?a) Homeownersb) Mortgage lendersc) Banks and other financial institutionsd) All of the above
What do the Great Depression and Global Financial Crisis have in common?a) Both were great for depression.b) Both had a stock market crash.c) Both had rising prices.d) Both had government programs like employment insurance.
If the quantity produced is more than the efficient market outcome,a) deadweight loss is eliminated.b) total surplus is greater than total surplus for the efficient market outcome.c) marginal cost is greater than marginal benefit.d) marginal benefit is greater than marginal cost.
For any quantity produced, total surplus is thea) deadweight loss.b) area under the marginal benefit curve but above the marginal cost curve.c) area above the marginal cost curve but below the market price.d) area under the marginal benefit curve but above the market price.
Consumer surplus is thea) difference between the amount a consumer is willing to accept and the price actually received.b) difference between the amount a consumer is willing and able to pay and the price actually paid.c) difference between the amount a consumer is willing and able to pay and the
The Children’s Fitness Tax Credit was introduced by the Government of Canada to provide parents with a tax credit (benefit) of up to $500 to register a child under the age of 16 in a program of physical activity. Therefore,a) demand for The Hunger Games novels may increase.b) demand for The
A surplus can be eliminated bya) increasing supply.b) decreasing the quantity demanded.c) allowing the price to fall.d) allowing the market-clearing quantity to fall.
Which will cause prices to fall?a) demand increases and supply decreasesb) demand increases and supply increasesc) demand decreases and supply decreasesd) demand decreases and supply increases
If demand increases and supply decreases, this leads toa) higher prices.b) lower prices.c) chaos.d) a shortage in the market.
In equilibrium,a) the price consumers are willing to pay equals the prices suppliers are willing to accept.b) consumers would like to buy more at the current price.c) producers would like to sell more at the current price.d) all of the above.
A price at which there are no shortages and no surpluses is aa) maximum price.b) minimum price.c) affordable price.d) market-clearing price.
When the price is too low we seea) unsold products.b) excess supply.c) shortages.d) frustrated sellers.
Which of the following is not a quantity adjustment?a) Tim Hortons asking its workers to work overtimeb) bookstores ordering extra copies of The Hunger Gamesc) Leon’s Furniture eliminating sales tax on all patio furnitured) a fish processing plant laying off 10 percent of its workers
If a market is not at the market-clearing price,a) prices adjust.b) prices send signals for consumers and businesses to change their smart decisions.c) quantities adjust.d) all of the above.
For markets to work,a) governments must establish fair market prices.b) governments must establish an online trading system.c) governments must define and protect property rights.d) all of the above are true.
Voluntary exchange happens in a market as long as thea) price is less than the marginal opportunity cost of the seller.b) marginal benefit for the buyer is less than the price.c) price equals or exceeds the marginal opportunity cost of the buyer.d) marginal benefit for the buyer exceeds the price.
The place where buyers and sellers meet is called a(n)a) store.b) economy.c) party.d) market.
The price should cover what it costs to T F make the iced cappuccinos, but not the cost of Apu’s time.
If customers are allowed to steal the iced T F cappuccinos without paying, this would still be a market.
Popeye’s Parlour supplies both piercing and tattoo services. Higher prices for piercings will cause Popeye’sa) quantity supplied of tattoos to increase.b) quantity supplied of tattoos to decrease.c) supply of tattoos to increase.d) supply of tattoos to decrease.
Which factor below can change supply?a) incomeb) environmental changec) number of consumersd) price of a complement
The furniture industry shifts to using particleboard(glued wood chips), rather than real wood, which reduces costs. Thisa) increases supply.b) decreases supply.c) leaves furniture supply unchanged.d) effect on supply depends on demand.
The market supply of tires decreases ifa) the price of oil — a major input used to produce tires — rises.b) tire-making technology improves.c) the expected future price of tires falls.d) new tire businesses enter the market.
The supply of a product or service increases with a(n)a) improvement in technology producing it.b) rise in the price a related product or service produced.c) rise in the price of an input.d) rise in the future price of the product or service.
Which factor below does not change supply?a) prices of inputsb) expected future pricesc) price of the supplied product or serviced) number of businesses
Suppose that all inputs in a business are equally productive at all activities. As the business increases its output, marginal opportunity costa) increases.b) decreases.c) is constant.d) is zero.
Showing 1700 - 1800
of 4718
First
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Last
Step by Step Answers
Get 50% OFF
Claim Now
