Question 1

The aggregate demand curve:

Accepted Answer

A)  is upward-sloping, because a higher price level makes production more profitable
B)  is downward-sloping, because a higher price level makes production more profitable
C)  shows the amount of real output that will be produced at each possible price level
D)  shows the amount of real output that will be purchased at each possible price level
E)  is upward-sloping, because a higher price level increases real expendituresF) A) and B)
G) B) and E)

Question 2

-Which of the above diagrams best portrays an improvement in business profit expectations?

Accepted Answer

A)  A
B)  B
C)  C
D)  D
E)  both C and DF) A) and E)
G) All of the above

Question 3

We would expect a decrease in personal and corporate income taxes to:

Accepted Answer

A)  shift the aggregate demand curve rightward
B)  increase consumption spending
C)  increase equilibrium real output
D)  increase investment spending
E)  shift AD rightward, increase consumption and investment spending, and increase equilibrium real outputF) All of the above
G) A) and D)

Question 4

0 to AD1 might be caused by a(n) : A) decrease in aggregate supply B) decrease in the amount of output supplied C) increase in investment spending D) decrease in net export spending E) increase in government purchases" class="answers-bank-image d-inline" rel="preload" >
-A shift in the aggregate demand curve from AD0 to AD1 might be caused by a(n) :

Accepted Answer

A)  decrease in aggregate supply
B)  decrease in the amount of output supplied
C)  increase in investment spending
D)  decrease in net export spending
E)  increase in government purchasesF) D) and E)
G) A) and B)

Question 5

Which of the following has made the largest contribution to the growth of labour productivity in Canada?

Accepted Answer

A)  the increase in the quantity of capital
B)  the discovery of new natural resources
C)  Canadian expenditures on R&D
D)  the increase in the quantity of labour
E)  increasing returns to scaleF) B) and D)
G) C) and D)

Question 6

An inflationary gap can best be described as the amount by which:

Accepted Answer

A)  equilibrium output exceeds potential output
B)  real expenditures exceed any given level of real output
C)  withdrawals exceed injections at the level of potential output
D)  real expenditures fall short of potential output
E)  withdrawals exceed injections at all levels of potential outputF) C) and E)
G) A) and C)

Question 7

-Which of the following statements is correct?

Accepted Answer

A)  Unplanned investment is zero only at equilibrium.
B)  All price levels where unplanned investment is positive are too low for equilibrium.
C)  All price levels where unplanned investment is negative are too high for equilibrium.
D)  Unplanned investment is zero at all possible price levels.
E)  Unplanned investment is zero at all possible price levels below equilibrium.F) B) and C)
G) C) and D)

Question 8

Economic growth is best represented by a:

Accepted Answer

A)  shift in the production possibilities curve from AB to CD
B)  move from y on CD to x on AB
C)  shift in the production possibilities curve from CD to AB
D)  move from z to x along AB
E)  a move from x to z along ABF) D) and E)
G) C) and D)

Question 9

Labour productivity is measured by:

Accepted Answer

A)  the ratio of capital to labour
B)  real output per worker hour
C)  real output per capita
D)  the ratio of worker hours to real GDP
E)  real GDPF) C) and D)
G) B) and C)

Question 10

Ceteris paribus,if the price of raw materials rises from $4 to $8 per unit,the per-unit cost of production will rise by about:

Accepted Answer

A)  100 percent
B)  50 percent
C)  40 percent
D)  30 percent
E)  20 percentF) A) and C)
G) C) and E)

Question 11

If a nation's real GDP is growing by 5 percent per year,its real GDP will double in approximately:

Accepted Answer

A)  22 years
B)  20 years
C)  14 years
D)  18 years
E)  5 yearsF) A) and D)
G) C) and E)

Question 12

If equilibrium output in an open economy is $1000 billion,and consumption is $700 billion at that level of real output,then:

Accepted Answer

A)  positive unplanned investment must be occurring
B)  net exports must be $300 billion
C)  G + I + X must equal $300 billion
D)  G + I + (X-M)  must equal $300 billion
E)  G + I must equal $300 billionF) B) and C)
G) A) and D)

Question 13

Amount of Real  Output Demanded  Price Level  (index value)   Amount of Real  Output Supplied $200300$475300250450400200400500150300600100100\begin{array} { | c | c | c | } \hline \begin{array} { c } 	ext { Amount of Real } \	ext { Output Demanded }\end{array} & \begin{array} { c } 	ext { Price Level } \	ext { (index value)  }\end{array} & \begin{array} { c } 	ext { Amount of Real } \	ext { Output Supplied }\end{array} \\hline \$ 200 & 300 & \$ 475 \\hline 300 & 250 & 450 \\hline 400 & 200 & 400 \\hline 500 & 150 & 300 \\hline 600 & 100 & 100 \\hline\end{array} Amount of Real  Output Demanded ​$200300400500600​ Price Level  (index value)  ​300250200150100​ Amount of Real  Output Supplied ​$475450400300100​​ 
-The equilibrium price level will be:

Accepted Answer

A)  150
B)  100
C)  250
D)  300
E)  200 F) B) and C)
G) B) and E)

Question 14

Which of the following would not shift the aggregate supply curve?

Accepted Answer

A)  an increase in labour productivity
B)  a decline in the price of imported oil
C)  a decline in business taxes
D)  an increase in the price level
E)  a rise in wagesF) B) and D)
G) A) and B)

Question 15

The recent switch of labour from manufacturing to the service sector has:

Accepted Answer

A)  been inflationary
B)  had no effect upon labour productivity
C)  increased the growth of labour productivity
D)  dampened the growth of labour productivity
E)  increased the value of the Canadian dollarF) D) and E)
G) A) and B)

Question 16

Consider the following table:

Input Quantity  Real Output 100200150300200400\begin{array}{|l|l|}\hline 	ext { Input Quantity } & 	ext { Real Output } \\hline 100 & 200 \\hline 150 & 300 \\hline 200 & 400 \\hline\end{array} Input Quantity 100150200​ Real Output 200300400​​ 
-If the price of each input is $5,the per-unit cost of production in this economy is:

Accepted Answer

A)  $5.00
B)  $2.75
C)  $2.50
D)  $0.40
E)  $2.00 F) D) and E)
G) B) and E)

Question 17

According to New Growth Theory,the factor that traditional theories of economic growth tended to downplay was:

Accepted Answer

A)  capital
B)  labour
C)  knowledge
D)  natural resources other than land
E)  landF) C) and D)
G) None of the above

Question 18

In the time since World War II,in which periods was the growth in per capita Canadian GDP the highest?

Accepted Answer

A)  1945 to 1973
B)  1973 to 1983
C)  1989 to 1995
D)  1996 to 2008
E)  2008 and thereafterF) B) and E)
G) A) and C)

Question 19

-Which of the above diagrams best portrays the effects of an increase in foreign spending on Canadian products?

Accepted Answer

A)  A
B)  B
C)  C
D)  D
E)  both A and DF) C) and E)
G) All of the above

Question 20

According to New Growth Theory,economic efficiency is maximized if:

Accepted Answer

A)  new ideas are priced in such a way that incorporates all the fixed costs, but not the variable costs, that were incurred in developing the idea
B)  new ideas are priced at zero
C)  new ideas are priced in such a way that incorporates all variable costs, but not the fixed costs, that were incurred in developing the idea
D)  new ideas are priced in the same way as any other commodity
E)  the prices of new ideas gradually rise after these ideas have been made commercially availableF) B) and C)
G) B) and E)

Exam 10: Economic Fluctuations

According to New Growth Theory,economic efficiency is maximized if:

Correct Answer
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-Which of the following statements is correct?

Correct Answer
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-Which of the above diagrams best portrays an improvement in business profit expectations?

Correct Answer
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Consider the following table: $\begin{array}{|l|l|}\hline \text { Input Quantity } & \text { Real Output } \\\hline 100 & 200 \\\hline 150 & 300 \\\hline 200 & 400 \\\hline\end{array}$ -If the price of each input is $5,the per-unit cost of production in this economy is:

Correct Answer
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Labour productivity is measured by:

Correct Answer
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If equilibrium output in an open economy is $1000 billion,and consumption is $700 billion at that level of real output,then:

Correct Answer
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-A shift in the aggregate demand curve from AD₀ to AD₁ might be caused by a(n) :

Correct Answer
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If a nation's real GDP is growing by 5 percent per year,its real GDP will double in approximately:

Correct Answer
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-Which of the above diagrams best portrays the effects of an increase in foreign spending on Canadian products?

Correct Answer
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The aggregate demand curve:

Correct Answer
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Which of the following has made the largest contribution to the growth of labour productivity in Canada?

Correct Answer
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Ceteris paribus,if the price of raw materials rises from $4 to $8 per unit,the per-unit cost of production will rise by about:

Correct Answer
verified

In the time since World War II,in which periods was the growth in per capita Canadian GDP the highest?

Correct Answer
verified

According to New Growth Theory,the factor that traditional theories of economic growth tended to downplay was:

Correct Answer
verified

Correct Answer
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Economic growth is best represented by a:

Correct Answer
verified

The recent switch of labour from manufacturing to the service sector has:

Correct Answer
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Which of the following would not shift the aggregate supply curve?

Correct Answer
verified

We would expect a decrease in personal and corporate income taxes to:

Correct Answer
verified

An inflationary gap can best be described as the amount by which:

Correct Answer
verified

Exam 10: Economic Fluctuations

According to New Growth Theory,economic efficiency is maximized if:

Correct AnswerverifiedShow Answer

-Which of the following statements is correct?

Correct AnswerverifiedShow Answer

-Which of the above diagrams best portrays an improvement in business profit expectations?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Labour productivity is measured by:

Correct AnswerverifiedShow Answer

If equilibrium output in an open economy is $1000 billion,and consumption is $700 billion at that level of real output,then:

Correct AnswerverifiedShow Answer

-A shift in the aggregate demand curve from AD0 to AD1 might be caused by a(n) :

Correct AnswerverifiedShow Answer

If a nation's real GDP is growing by 5 percent per year,its real GDP will double in approximately:

Correct AnswerverifiedShow Answer

-Which of the above diagrams best portrays the effects of an increase in foreign spending on Canadian products?

Correct AnswerverifiedShow Answer

The aggregate demand curve:

Correct AnswerverifiedShow Answer

Which of the following has made the largest contribution to the growth of labour productivity in Canada?

Correct AnswerverifiedShow Answer

Ceteris paribus,if the price of raw materials rises from $4 to $8 per unit,the per-unit cost of production will rise by about:

Correct AnswerverifiedShow Answer

In the time since World War II,in which periods was the growth in per capita Canadian GDP the highest?

Correct AnswerverifiedShow Answer

According to New Growth Theory,the factor that traditional theories of economic growth tended to downplay was:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economic growth is best represented by a:

Correct AnswerverifiedShow Answer

The recent switch of labour from manufacturing to the service sector has:

Correct AnswerverifiedShow Answer

Which of the following would not shift the aggregate supply curve?

Correct AnswerverifiedShow Answer

We would expect a decrease in personal and corporate income taxes to:

Correct AnswerverifiedShow Answer

An inflationary gap can best be described as the amount by which:

Correct AnswerverifiedShow Answer

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-A shift in the aggregate demand curve from AD₀ to AD₁ might be caused by a(n) :

Correct Answer
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Correct Answer
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