1 GDP, as measured by the national accounts, is an imperfect measure of a country's level of economic welfare.Which of the following factors tends to cause it to overstate the true level (we are not as well off as the national accounts indicate)?

None of the above

The presence of significant, non-market production.

The presence of a significant underground (unregistered) economy

The presence of negative side effects of production such as carbon emissions and pollution.

2 The equilibrium of aggregate supply and aggregate demand represents:

the natural rate of output and the natural general price level.

the general price level and the rate of GDP growth.

the inflation rate of the economy and the real GDP level.

the general price level of the economy and the real GDP level

3 Which of the following is NOT a component of aggregate demand?

investment spending

the money supply

net export spending

consumption spending

4 Suppose we want to know whether the minimum wage of $ 14 per hour today compared to the minimum wage that Prof. Gray might have earned in 1977 had he worked in Canada (suppose that it was $ 3 per hour).How might one go about making the correct calculation?

subtract the old wage level for the new level

Compare the % change in the nominal wage to the % change in the real wage

convert the nominal wage in 2020 ($ 14) into constant, real dollars of 1977 and compare it $ 3.

compare the real wage in 1977 in 2020 $ to the nominal wage in 1977.

5 A determinant of the position of the demand of loanable funds curve is:

the interest rate

investment opportunities.

the money supply

social welfare policies.

6 Fill in the blanks of the following sentence.When financial markets are ________, leverage ________; when they are ________, leverage ________.

booming; magnifies the losses; crashing; multiplies the gains

booming; multiplies the gains; crashing; magnifies the losses

crashing; mitigates the losses; booming; mitigates the gains

None of these statements is true.

7 Don worked as a machinist all his life, and was recently laid off because his plant closed, and the jobs were outsourced to India. There don't seem to be any machinist jobs in the area anymore. Don would be considered:

structurally unemployed.

to be a discouraged worker.

frictionally unemployed.

real-wage unemployed.