Questions and Answers of Macroeconomics Canada In The Global Environment

How can the unemployment rate be less than the natural rate?
Why is a change in the age structure of the population, increasing the proportions of young or old workers in the labour force, likely to change the natural rate of unemployment?
What is the natural unemployment rate? What is the controversy concerning its measurement?
What has been the average annual growth in real GDP per person in Canada over the last 80 years? Over the past 50 years, during which periods has annual growth been more rapid than the average? When
What is an aggregate production function? A change in what factor or factors cause a movement along the aggregate production function? A change in what factor or factors shifts the aggregate
Define labour productivity. Why is labour productivity important?
What role do technological advances play in the classical theory of growth? The neoclassical theory? The new theory?
What is the difference between “insolvency” and “illiquidity”?
Michael is an Internet service provider. On December 31, 2014, he bought an existing business with servers and a building worth $400,000. During 2015, his business grew and he bought new servers for
Explain why and how investment depends on the real interest rate.
Michael is an Internet service provider. On December 31, 2014, he bought an existing business with servers and a building worth $400,000. During 2015, his business grew and he bought new servers for
What is the loanable funds market?
If the actual real interest rate differs from the equilibrium real interest rate, what forces drive the real interest rate to the equilibrium real interest rate?
Michael is an Internet service provider. On December 31, 2014, he bought an existing business with servers and a building worth $400,000. During 2015, his business grew and he bought new servers for
First Call, Inc., a smartphone company, plans to build an assembly plant that costs $10 million if the real interest rate is 6 percent a year or a larger plant that costs $12 million if the real
An economy’s capital stock was $46.3 trillion at the end of 2010, $46.6 trillion at the end of 2011, and $47.0 trillion at the end of 2012. Depreciation in 2011 was $2.4 trillion, and gross
What is the Ricardo-Barro effect and how does it modify the crowding-out effect?
An economy’s capital stock was $46.3 trillion at the end of 2010, $46.6 trillion at the end of 2011, and $47.0 trillion at the end of 2012. Depreciation in 2011 was $2.4 trillion, and gross
Annie runs a fitness centre. On December 31, 2014, she bought an existing business with exercise equipment and a building worth $300,000. During 2015, business improved and she bought some new
Karrie is a golf pro, and after she paid taxes, her income from golf and interest from financial assets was $1,500,000 in 2013. At the beginning of 2013, she owned $900,000 worth of financial assets.
Why is the use of money in the exchange of goods and services less costly than using barter?
Everyone knows that true money is issued by the government; that is, the only real form of money is the nations currency.” Comment on this assertion.
In July 2011, currency held by individuals and businesses was $57 billion; chequable deposits owned by individuals and businesses were $211 billion; nonchequable person deposits were $163 billion;
Define the monetary base.
Ask anyone if he or she has enough money. No one ever has enough money, that is, everyone demands more money. Thus theorizing about the demand for money makes no sense because this demand obviously
If the price level was already doubling every month and inflation accelerating, what would you expect to happen to the velocity of circulation and why? How close would you expect the relation between
In the economy of Nocoin, bank deposits are $300 billion, bank reserves are $15 billion of which two thirds are deposits with the central bank. Households and firms hold $30 billion in bank notes.
How does a currency drain affect the money multiplier?
What are depository institutions?
What is the central bank in Canada and what functions does it perform?
The RBC says lines of credit for education are popular and the size of loans to students has been going up as tuition costs have increased. Compared to “good debt” like a mortgage, student loan
The RBC says lines of credit for education are popular and the size of loans to students has been going up as tuition costs have increased. Compared to “good debt” like a mortgage, student loan
Describe the Bank of Canada’s assets and liabilities. What is the monetary base and how does it relate to the Bank of Canada’s balance sheet?
What is the quantity theory of money?
What is the equation of exchange?

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