Question 1:

The monetary aggregate M1 includes:

Please choose an answer:

a. cash and demand deposits.

b.cash, demand deposits and savings accounts.

c. cash, demand deposits and coins.

d.cash, savings accounts and government bonds.

e.None of the above.

Question 2:

When the general level of prices increases at a very high rate, we then speak of:

Please choose an answer:

a.of inflation.

b.of hyperinflation.

c.of deflation.

d.of disinflation.

Question 3:

When are net exports negative? (2 points)

Please choose an answer:

a.When Canada imported fewer goods and services than it exported.

b.When Canada lent to foreign countries.

c.When Canada borrowed from foreign countries.

d.When foreign countries exported less goods and services to Canada than they imported.

e.All of these answers.

Question 4:

What is the equilibrium called when the economy is characterized by an inflationary gap?

Question 5:

What is the impact of a decrease in consumer optimism? (2 points)

Please choose an answer:

a.Shift of the short-term aggregate supply curve to the right

b.Shift of the short-term aggregate supply curve to the left

c. Shift of the aggregate demand curve to the right

d. Shift of the aggregate demand curve to the left