• McGill University

• ECON 209

These 101 questions have been randomly selected (for the chapters eligible for examination) by the computer from the test bank that accompanies your text.  Your prof. has not seen these questions, so as not to bwe influenced by them when setting the final exam.  The answer list is at the end of the exam. MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question. 1) If constant-dollar national income decreased by $6 billion, then it must be true that A) the price level decreased. B) aggregate output decreased. C) aggregate output increased and the price level decreased. D) aggregate output decreased and the price level increased. E) the level of individual output decreased. 2) Macroeconomics is mainly concerned with the study of A) governments and their intervention in individual markets. B) individual households and how they deal with problems like inflation and unemployment. C) fluctuations and trends in disaggregated data. D) fluctuations and trends in aggregated data. E) large economic units such as General Motors or Molson Breweries 3) Consider a small economy with 3 individuals. Individual A produces 100 chickens that sell for $8 each. Individual B produces 50 bags of corn that sell for $10 each. Individual C produces 40 bushels of apples that sell for $20 each. National product in this economy is A) $2100. B) $2470 C) 190 units of goods produced. D) 100 chickens plus 50 bags of corn plus 40 bushels of apples. E) not determinable from the information provided. 4) If a countryʹs labour force is 15 million people, and 1 million of those are unemployed, the countryʹs unemployment rate is A) 2.5 percent. B) 3.3 percent. C) 4.5 percent. D) 6.7 percent. E) 9.0 percent. 5) During the 1970s, Canada experienced an unusual pattern of interest rates. During this period A) the nominal interest rate was less than the real interest rate. B) the inflation rate was negative, implying a nominal interest rate higher than the real interest rate. C) the inflation rate was negative, implying a real interest rate that was higher than the nominal interest rate. D) the nominal and real interest rates were equal to each other. E) the inflation rate exceeded the nominal interest rate, implying a negative real interest rate. 6) An example of a topic  outside the scope of macroeconomics is A) the level of productivity, as compared with that in the United States. B) changes in the price of a particular good in a specific market. C) changes in the unemployment rate. D) the aggregate growth rate of the economy. E) the overall level of unemployment. 21 7) To compare the economyʹs aggregate output in two different time periods, economists compare the A) unemployment rates for the two periods. B) real national income for the two periods. C) potential national incomes for the two periods. D) inflation rates for the two periods. E) nominal national income for the two periods. The table below shows total output for an economy over 3 years. Year Money GDP* Deflator Re