question 1

If a Canadian citizen buys a television made in Korea made by a Korean firm, what is the impact on net exports and GDP?

Select one:

a. Canadian net exports and Canadian GDP decrease.

b. Canadian net exports and Canadian GDP are unaffected.

c. Canadian net exports decrease, but Canadian GDP is unaffected.

d. Canadian net exports are unaffected, but Canadian GDP decreases.

question no 2

A country reported nominal GDP of $200 billion in 2012 and $180 billion in 2011 and reported a GDP deflator of 125 in 2012 and 105 in 2011. What happened to real output and prices from 2011 to 2012?

Select one:

a. None of the other choices are correct

b. Real output and prices both rose.

c. Real output and prices both fell.

d. Real output fell and prices rose.

e. Real output rose and prices fell.

question 3

What happens when the dollar depreciates?

Select one:

a. Canadian exports increase, while imports decrease.

b. Canadian exports and imports decrease.

c. Canadian exports decrease, while imports increase.

d. Canadian exports and imports increase.

e. None of the other choices are correct

question4

After a major flood destroyed an extended residential area in Calgary, what might have happened?

Select one:

a. Aggregate demand shifted to the right and prices increased.

b. Aggregate demand shifted to the right and prices decreased.

c. None of the other choices are correct

d. Aggregate demand shifted to the left and prices increased.

e. Aggregate demand shifted to the left and prices decreased.