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Question 45 OkunÕs Law expresses a relationship between: …
Question 45
OkunÕs Law expresses a relationship between:
Real output and inflation
Potential GDP and full-employment output
The Unemployment rate and the size of the GDP gap
Unemployment and inflation
Question 44
As defined in national income accounting, investment refers to:
Business expenditures on machinery and equipment
All construction
Changes in business inventories
All of the above
Question 43
Refer to the above data. In 2018, real GDP was:
$180 billion
$250 billion
$435 billion
$500 billion
Question 42
An increase in AS, other things being equal, will cause:
An increase in the price level and an increase in real output
An increase in the price level and a decrease in real output
A decrease in the price level and a decrease in real output
A decrease in the price level and an increase in real output
Question 43
Suppose that a personÕs nominal income rises from 30,000 to 36,000 and the price index rises from
100 to 105 . The personÕs real income will:
Fall by about 20 percent
Fall by about 2 percent
Rise by about 15 percent
Rise by about 22 percent
Question 40
Which of the following should be excluded when summing personal expenditures on consumer goods and services for the purpose of calculating GDP expenditure-based?
Durable consumer goods such as cars and furniture
Clothing and shoes
Milk, soap, and cheese
Houses
Question 39
The fact that nominal GDP has risen faster than real GDP:
Suggests that the base year of the GDP deflator has been changed
Tells us that the rate of unemployment has risen
Suggests that the general price level has fallen
Suggests that the general price level has risen
Question 38
Which of the following describes structural unemployment?
Unemployment that results when employees leave their jobs because of bad working conditions
Unemployment that results from people moving between jobs or entering or re-entering the labour force
Unemployment that is caused by a mismatch between the types of skills that unemployed workers possess and the types of workers that employers would like to hire
Unemployment that is caused by declines in aggregate expenditure and total output
Question 37
How should a car, produced in 2020 and sold as a used car in 2021, be handled in the national income accounts for 2021?
It has value, so the purchase price of the used car in 2021 should be included
Everything sold in Canada must be counted; new or used
Used cars are a part of the country’s wealth; the entire value of the used car should be included in the 2021 GDP figures
The value of the car was included in the GDP figures for 2020; it should not be included in 2021
Question 36
Refer to the above data. In 2020, real GDP was:
$350 billion
$615 billion
$200 billion
$ 280 billion
Question 35
Other things equal, an improvement in productivity will:
Shift the AD curve to the left
Shift the AS curve to the left
Shift the AS curve to the right
Increase the price level
Question 34
Unemployment that arises because of declines in aggregate expenditures and total output is called:
Frictional unemployment
Seasonal unemployment
Cyclical unemployment
Technological unemployment
Question 33
To be officially unemployed a person must:
Be in the labour force
Be 21 years of age or older
Have just graduated from college
Be a homemaker
Question 32
National income accountants can avoid double counting by:
Including government transfer payments such as old age security in their calculations
Counting both intermediate and final goods
Only counting final goods
By summing the dollar value of all market transactions in the economy
