Type:
Test Bank
Resource:
Macroeconomics
Edition:
9th Edition
Author(s):
Andrew B. Abel Ben S. Bernanke Dean Croushore Ronald D. Kneebone
TEST BANK Saeed Moshiri St. Thomas More College, University of Saskatchewan
Macroeconomics Ninth Canadian Edition Andrew B. Abel
The Wharton School of the University of Pennsylvania
Ben S. Bernanke
Brookings Institution
Dean Croushore
Robins School of Business, University of Richmond
Ronald D. Kneebone
The School of Public Policy, University of Calgary
Contents Chapter 1: Introduction to Macroeconomics Chapter 2: The Measurement and Structure of the Canadian Economy Chapter 3: Productivity, Output, and Employment Chapter 4: Consumption, Saving, and Investment Chapter 5: Saving and Investment in the Open Economy Chapter 6: Long-Run Economic Growth Chapter 7: The Asset Market, Money, and Prices Chapter 8: Business Cycles Chapter 9: The IS-LM-FE Model: A General Framework for Macroeconomic Analysis Chapter 10: Exchange Rates, Business Cycles, and Macroeconomic Policy in the Open Economy Chapter 11: Classical Business Cycle Analysis: Market-Clearing Macroeconomics Chapter 12: Keynesian Business Cycle Analysis: Non-Market-Clearing Macroeconomics Chapter 13: Unemployment and Inflation Chapter 14: Monetary Policy and the Bank of Canada Chapter 15: Government Spending and Its Financing
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Macroeconomics, Cdn. 9e (Abel et al.) Chapter 1 Introduction to Macroeconomics 1.1 Multiple-Choice Questions 1) Which of the following is a topic of macroeconomics? A) why nations have different rates of growth B) what causes inflation and what can be done about it C) why unemployment periodically reaches very high levels D) all of the above Answer: D Diff: 1 Type: MC Page Ref: 1 2) The two major reasons for the tremendous growth in output in the Canadian economy over the last 125 years are A) population growth and budget deficit. B) population growth and increased productivity. C) low unemployment and budget surplus. D) low budget deficit and low trade deficits. Answer: B Diff: 1 Type: MC Page Ref: 2 3) The main reason Canada has such a high standard of living is A) low unemployment. B) high average labour productivity. C) low inflation. D) low government budget deficits. Answer: B Diff: 1 Type: MC Page Ref: 2 4) Average labour productivity is A) the amount of workers per machine. B) the amount of machines per worker. C) the ratio of employed to unemployed workers. D) the amount of output per worker. Answer: D Diff: 1 Type: MC Page Ref: 2 5) In analyzing macroeconomic data during the past year, you have discovered that average labour productivity fell, but total output increased. What was most likely to have caused this? A) Government deficit was reduced. B) The capital/output ratio probably rose. C) There was an increase in labour input. D) Unemployment probably increased. Answer: C Diff: 3 Type: MC Page Ref: 2 1 ..
6) The business cycle describes the A) progression of an industry's structure from monopoly to perfect competition. B) progression of an industry's structure from perfect competition to monopoly. C) expansion and contraction of an individual industry within the economy. D) expansion and contraction of economic activity in the economy as a whole. Answer: D Diff: 1 Type: MC Page Ref: 3 7) The short-run, but sometimes sharp, contractions and expansions in economic activity are called A) recession. B) stagnation. C) inflation. D) business cycles. Answer: D Diff: 1 Type: MC Page Ref: 3 8) When national output declines, the economy is said to be in A) an expansion. B) a deflation. C) a recovery. D) a recession. Answer: D Diff: 1 Type: MC Page Ref: 3 9) During recessions, the unemployment rate ________ and output ________. A) rises; falls B) rises; rises C) falls; rises D) falls; falls Answer: A Diff: 1 Type: MC Page Ref: 3 10) The unemployment rate is the A) number of unemployed divided by the number of employed. B) number of employed divided by the number of unemployed. C) number of unemployed divided by the labour force. D) labour force divided by the number of unemployed. Answer: C Diff: 1 Type: MC Page Ref: 4
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