Questions
Autoworkers agree to a cut in the nominal wage rate. This event ________ short-run aggregate supply...

Autoworkers agree to a cut in the nominal wage rate. This event ________ short-run aggregate supply and ________ long-run aggregate supply.

A.

does not change; does not change

B.

decreases; does not change;

C.

increases; does not change;

D.

increases; increases

Discretionary fiscal policy

A.

involves only a change in personal income tax rates.

B.

requires action by Parliament.

C.

occurs during recessions but not during expansions.

D.

is triggered by the state of the economy.

If the current account is in surplus and the capital and financial account is also in surplus, then the official settlements account balance is

A.

probably close to zero, but could be either negative or positive.

B.

zero.

C.

negative.

D.

equal to the sum of the current account and the capital account.

Suppose the Bank of Canada follows a fixed exchange rate of $1 U.S. per Canadian dollar. If the demand for Canadian dollars temporarily increases, to maintain the target exchange rate, the Bank can

A.

buy Canadian dollars.

B.

violate purchasing power parity.

C.

enforce interest rate parity.

D.

sell Canadian dollars.

A technological advance shifts

A.

both SAS and AD rightward.

B.

both SAS and LAS rightward.

C.

LAS rightward but leaves SAS unchanged.

D.

SAS rightward but leaves LAS unchanged.

Choose the correct statement.

A.

Tax cuts increase aggregate supply and aggregate demand.

B.

Tax cuts strengthen the incentive to work and to invest.

C.

The tax multiplier becomes smaller as time passes.

D.

Both A and B are correct.

A tax on labour income

A.

decreases the supply of labour and has no influence on the real wage rate.

B.

has no effect on the demand for labour.

C.

increases the supply of labour and lowers the real wage rate.

D.

decreases the demand for labour but does not change the real wage rate.

Important factors that change the demand for dollars and hence shift the demand curve for dollars include which of the following?

I.     interest rates around the world

II.   the current exchange rate

III. the expected future exchange rate

A.

I and II

B.

II

C.

I, II, and III

D.

I and III

In: Economics

Which one of the following variables is not held constant along a given aggregate demand curve?...

Which one of the following variables is not held constant along a given aggregate demand curve?

A.

expectations about inflation

B.

the exchange rate

C.

the price level

D.

fiscal policy

Everything else remaining the same, an increase in the interest rate increases saving and

A.

decreases aggregate demand through the intertemporal substitution effect.

B.

increases aggregate demand through the intertemporal substitution effect.

C.

increases aggregate demand through the international substitution effect.

D.

increases aggregate demand through the wealth effect.

Discretionary fiscal policy is risky because it is hampered by

A.

recognition lag, impact lag, and law-making lag.

B.

recognition lag, inflation lag, and law-making lag.

C.

recognition lag, impact lag, and business cycle lag.

D.

recognition lag, business cycle lag, and law-making lag.

Foreign exchange dealers expect the Canadian dollar next year to appreciate against all currencies. What is the effect on the quantity of real GDP demanded or aggregate demand in Canada?       

A.

Canadian aggregate demand decreases.

B.

Canadian aggregate demand increases.

C.

The quantity of Canadian real GDP demanded decreases.

D.

The quantity of Canadian real GDP demanded increases.

In: Economics

This question is based on the current Covid-19 pandemic. Suppose the risk of being infected or...

This question is based on the current Covid-19 pandemic. Suppose the risk of being infected or infecting others while eating in restaurants is high. Consider the market for dine-in restaurant meals. Is there a discrepancy between the marginal private and social benefit (or cost)? Show on a graph the quantity of restaurant meals that would be sold and the quantity that would maximize economic surplus. Is there a discrepancy between the two? What solution do you think would be most appropriate to deal with this? What solution was taken by most governments? Do you agree with it or not?

In: Economics

What do you mean by information architecture and information technology infrastructure? Why are they important concern...

What do you mean by information architecture and information technology infrastructure?

Why are they important concern for managers?

In: Economics

The recent Coronaviruz has had a big impact on our ecomomy, can someone explain to me...

The recent Coronaviruz has had a big impact on our ecomomy, can someone explain to me how the thr following has been effected recently?

1. explain the public goods problem
2. explain the solution to the public goods problem
3. provide 4 examples of public goods that are instrumental in managing / solving the Coronavirus outbreak? ex: world health organization is a public organization
4. comment on how effective these public goods are currently functioning. What could be fone to improve their functioning?

thank you very much!

In: Economics

how does global warming brings out diseases, floods, drought, and storms. how can we prevent them?

how does global warming brings out diseases, floods, drought, and storms. how can we prevent them?

In: Economics

1. In the neo-classical model, the aggregate supply curve has three ranges depending on how far...

1.

In the neo-classical model, the aggregate supply curve has three ranges depending on how far the economy is from full employment.

a. True

b. False

2.  

Suppose you are given the following fixed-price Keynesian model:

C = 480 + 0.9Yd

I = 200

G = 100

X = 200

M = 100 + 0.1Yd

T = 100.

What is the equilibrium level of GDP?

a.

1180

b.

5500

c.

4400

d.

4000

e.

3200

3.  

In the question above, at equilibrium the level of consumption spending is $3990

a. True

b. False

4.

The aggregate demand curve can be derived by looking at different levels of output along the production function.

True

False

In: Economics

Examples of contemporary issues that is negatively impacting the delivery of criminal justice.

Examples of contemporary issues that is negatively impacting the delivery of criminal justice.

In: Economics

List at least three demographic traits that apply to you. How does belonging to these demographic...

List at least three demographic traits that apply to you. How does belonging to these demographic groups influence your perceptions and priorities?

In: Economics

Was there a globalization backlash? Explain.

Was there a globalization backlash? Explain.

In: Economics

1) Which of the following may cause a departure from Equilibrium GDP: a. imports b. taxes...

1)

Which of the following may cause a departure from Equilibrium GDP:

a. imports

b. taxes

c. increase in savings

d. all the above

2)

Which of the following is NOT an ‘injection’ into the income-expenditures stream:

a. exports

b. government purchases

c. investment

d. imports

3)

A limitation of the Aggregate Expenditures model is that it doesn’t directly show:

a. price level changes

b. any role for net exports

c. investment spending

d. none of the above

4)

The Aggregate Demand (AD) curve may shift to the right due to:

a. rise in household debt spending

b. an increase in interest rates

c. higher business taxes

The Aggregate Demand (AD) curve may shift to the left due to:

  1. decline in real income

  2. higher business taxes

  3. fall in the price level

  4. reduction in household debt

In: Economics

What is thought to be the relationship between enclosure, the agricultural revolution and the development of...

What is thought to be the relationship between enclosure, the agricultural revolution and the development of capitalism?

In: Economics

Q-2. Will you brand with a company name, individual name, private-label brand, or multiple brands? Explain...

Q-2. Will you brand with a company name, individual name, private-label brand, or multiple brands? Explain in detail why? List and discuss any five considerations that you must consider while taking branding decision.

In: Economics

What is the present value of 500,000 fifteen years from now at a 4% interest rate...

What is the present value of 500,000 fifteen years from now at a 4% interest rate with exponential discounting? With hyperbolic discounting? When would you choose to use hyperbolic discounting instead of exponential discounting?

In: Economics

Which strategy is better for ensuring sustainability: Government Regulation or Market Self-Regulation? Give example.

Which strategy is better for ensuring sustainability: Government Regulation or Market Self-Regulation? Give example.

In: Economics