1)Which of the following topics would NOT be studied by a macroeconomist?

(A) The economic growth rates of the country

(B) The effects of monetary policies on the value of the Canadian dollar

(C) The effects of how government funding on education affects Canada?s national debt

(D) The effects of how cutting the Goods and Services sales tax affect the restaurant industry

2)Which of the following does NOT accurately describe inflation rates?

(A) They capture the persistent changes in the general price levels

(B) They can be derived from Consumer Price Index

(C) They can be positive, negative or equal to zero

(D) They magnify the values of real GDP

3)Which of the following statements is INCORRECT?

(A) The output measurement of GDP describes the supply side of the economy

(B) The value added measurement of GDP describes the demand side of the economy

(C) The income measurement of GDP describes the supply side of the economy

(D) The expenditure measurement of GDP describes the demand side of the economy

4)What does the Consumer Price Index (CPI) measure?

(A) The changes in the quality of the goods and services produced within an economy over

time

(B) Percentage changes in the CPI reflect inflation rates

(C) The prices of all goods and services produced within an economy

(D) All of the answers are correct

5)How is the income-based GDP measured?

(A) The sum of employee compensation net of taxes, corporate surplus net of taxes, indirect

taxes less subsidies

(B) The sum of employee compensation, net corporate surplus, net mixed income capital

consumption allowance, net indirect taxes

(C) The sum of employee compensation, net corporate surplus indirect taxes and subsidies

(D) None of the answers is correct