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In general, productivity is a measure of A. potential output. B. the amount of output that the economy produces per unit of input. C. real GDP as a function of total employment. D. the economy's ability to increase real GDP per capita. E. the total amount of output that the economy is capable of producing. - Answers-B. the amount of output that the economy produces per unit of input. Inflation is the rate of change of average prices in the economy. In general, we can say that inflation ...

Cyclical unemployment is associated with which of the following features of the labour market - Answers-An output level different from the economy's potential output In December 2022, Ontario's working age (15+) population included 7,748,000 people that were classified asemployed, 366,000 people that were unemployed, and 4,487,000 people that were not in the labour force.Among working age people, the employment rate in Ontario was approximately - Answers-61.5% If nominal national income ...

In our simple macro model with government, consider the equation YD = (0.75)Y. Which of the following statements about this equation is correct? A. Net tax revenue is equal to 25% of disposable income. B. If disposable income increases by $0.75, then national income increases by $1.00 and total tax revenue rises by $0.75. C. If national income increases by $1.00, then disposable income increases by $0.75 and net tax revenue increases by $0.25. D. Net tax revenue is equal to 75% of national...

In Shoetown, a rancher takes $80 worth of inputs and produces animal skins, which he sells to the tanner for $400. The tanner then sells leather to the shoemaker for $690, and the shoemaker then sells $1 200 worth of shoes. The value added from these transactions is A. $2,370. B. $2,100 C. $1,200. D. $770 E. $1120 - Answers-E. $1120 Suppose nominal national income in some country fell from $100 billion to $95 billion during the year. Over the same period, inflation was 5%. In this case, ...

Canada's unemployment rate has been as low as ________ in the 1960s and as high as ________ during the recession in the early 1980s. A. 2.4%; 10% B. 5.5%; 17% C. 2.0%; 15% D. 4.6%; 14% E. 3.4%; 12% -Answers- E. 3.4%; 12% If one Canadian dollar can be exchanged for 0.5 euros, we say that the Canadian−euro exchange rate is A. 2.0. B. 0.5. C. 5.0. D. 20. E. 1.0. -Answers- A. 2.0.

discouraged worker - Answers-a marginally attached worker who has stopped looking for a job because of repeated failure to find one frictional unemployment - Answers-the unemployment that arises from the normal labour turnover; from people entering and leaving the labour force and from the ongoing creation and destruction of jobs structural unemployment - Answers-the unemployment that arises when changes in technology or international competition change the skills needed to perform jobs or...

Consider the circular flow of expenditure and income in the Canadian economy. Which of the following is an injection into the circular flow? A. You put $500 into your TFSA (tax−free savings account). B. Bombardier imports machine parts from Germany. C. Loblaws pays corporate income tax to the federal government. D. You make an online purchase from a U.S. retailer. E. Bombardier exports subway cars to Mexico. - Answers-E. Bombardier exports subway cars to Mexico. In macroeconomics, what...

Suppose aggregate output is demand−determined. If the simple multiplier is 4 and there is a $10 billion increase in planned investment spending, then equilibrium income will ________ and the marginal propensity to spend must equal ________ - Answers-increase by $40 billion; 0.75 In a simple macro model, an increase in households' wealth is generally assumed to - Answers-cause an upward shift in the aggregate consumption function The consumption function is based on the assumption that ...

Short term: these often occur as the actual and potential GDP do not meet or align often How to calculate nominal GDP - Answers-Multiply quantity of the year by the corresponding price for that year. How to calculate real GDP - Answers-Multiply quantity of the year by a set base year price for all years How to calculate the GDP deflator? - Answers-Nominal GDP / Real GDP x 100

Calculating CPI - Answers-1. Calculate total expenditure in base year 2. Calculate how much that would cost in current year 3. Divide step 2 by step 1, x 100 4. CPI in base year is always 100 Real interest rate equation - Answers-= nominal interest rate - inflation GDP - Answers-total production in a country Inflation Using CPI - Answers-Year 2 CPI - Year 1 CPI / Year 1 CPI x 100 Nominal Interest Rate - Answers-The price paid per dollar borrowed per period of time