Take your pick!
Which of the following is not a component of Aggregate Demand?
A. Consumption
B. Investment
C. Saving
D. Net Exports
C. Saving
Name the 4 phases of a business cycle. (See image)
Trough, Expansion, Peak, Contraction (Recession)
In the circular flow model, households supply resources to firms through which market?
Factor Market (Land, Labour, Capital, Entrepreneurship)
A measure of price changes for a typical basket of consumer products
Consumer Price Index
Where will be the 2030 Winter Olympics be hosted?
French Alps, France
Bertha just graduated college and is in the midst of applying for jobs. What type of unemployment is she experiencing?
a. Frictional
b. Structural
c. Seasonal
d. Cyclical
a. Frictional
Illustrate a negative GDP Gap on an AD/AS Graph.
Recessionary Gap - AE to the left of LRAS
What is the difference between cost-push inflation and demand-pull inflation?
Cost-push inflation is driven by supply costs while demand-pull inflation is driven by consumer demand. Both will lead to higher prices passed on to consumers.
The number of years that it takes a variable to double can be estimated by this
Rule of 70
The leading country currently has 15 gold medals. What country is this?
Norway
A leftward shift of the short-run aggregate supply curve would illustrate:
A. Demand pull inflation
B. Inflationary Gap
C. Positive GDP Gap
D. Cost-push inflation
D. Cost-push inflation
Will the following event cause a shift in the position of the LRAS curve? If it causes a shift, sketch the graph as well.
A tsunami decimates oil rigs, factories, and ports along the coast of a nation
Yes - There is a shift of the LRAS curve to the left. The capacity for production has been reduced.
What are 2 of 3 things not included when calculating GDP?
1. Used Goods / Second Hand Sales
2. Financial Assets (Bonds & Stocks)
3. Transfer Payments
The amount by which equilibrium output exceeds potential output
Inflationary Gap
The first Winter Olympics had 5 official sports. Which of the 5 is no longer a part of the current Winter Olympics?
Tobogganing
Canada's unemployment rate is reported as 6.5% in March 2024. There are 1.3 million unemployed people actively seeking work. What is the approximate size of Canada's labor force?
A. 8.45 Million People
B. 20 Million People
C. 21.3 Million People
D. 19.7 Million People
B. 20 Million People
UR = (Unemployed People / Labour Force)*100
If UR = 6.5%, Unemployed People = 1.3 Million then Labour Force = ?
Draw the AS/AD graph to illustrate an increase in the incomes of Canadian trading partners and how it would AS/AD for Canada.
Aggregate Demand Curve shift to the right.
(Higher incomes abroad will lead Canadian trading partners to increase their purchases of Canadian produced goods. The resulting increase in Canadian net exports will add to aggregate demand in Canada, leading to increased real output and a higher price level.
What are 3 examples of leakages?
Imports, Savings & Sum of Taxes
As changes of price level occur, the real value of households' financial assets changes, this causes households to adjust their spending
Wealth Effect
(Determinant of Aggregate Demand)
Canada currently has 4 gold medals. What sports are they from?
Freestyle Skiing (2) - Moguls & Big Air, Short Track Speed Skating (1), Speed Skating (1)
Suppose the CPI value for 1996 is 150, and the CPI value for 1997 is 155. Given this the inflation rate for 1997 is:
A. 2.5%
B. 3.23%
C. 3.33%
D. 5%
C. 3.33%
[(CPI2 - CPI1)/CP1] *100
Illustrate an Expansionary Fiscal Policy
Negative GDP Gap (Recessionary), Demand shifts right
Calculate the GDP using the income approach.
$602 (In Billions of Dollars)
These government policies are designed to stabilize prices and reduce output
Contractionary Policies
The 2026 Winter Olympic Games featured one new sport - what is it?
Sport Mountaineering