PROBLEM SET FOR CH 11 Suggested Solutions December 9, 2004
1. See textbook and lecture notes.
2 BJM Q 11.1 a. True. See the introduction to Ch 11 in the text. b. False. The original Phillips curve bro
ECO202: Solutions to Quiz #3
1. (5 points) Read the statements below carefully. Decide whether the underlined statement is true, false
or uncertain and explain the arguments for your answer. Answers w
ECO202: Solutions to Test 4
1. (20 points total) The Bank of England is concerned that their inflation rate is too low and
wants to permanently raise the current inflation rate by 9 percentage points.
ECO202: Quiz 2 Solutions
1. (5 points) Read the statements below carefully. The first few sentences provide information
to you about the scenario it is true. Decide whether the underlined statement is
ECO202: Solutions to Quiz #4
1. (5 points) Read the statements below carefully. Decide whether the underlined statement is true, false
or uncertain and explain the arguments for your answer. Answers w
ECO202: Solutions to Quiz 1
*Note: the solutions provided here are very detailed because I want you to learn from the
solutions if you didnt answer the question correctly. This is not the amount of in
ECO202: Solutions to Term Test 3
Extra Credit:
1. The last time Canada pegged the CA Dollar to the US Dollar was:
A. 1841 1858
B. 1860 1871
C. 1949 1950
D. 1962 1970
2. Canadas unemployment rate in De
ECO202: Solutions to Term Test 2
Please circle the letter to indicate your answer. Wrong answers will not affect your test.
1. As of 2013, Canada is currently running a:
A. trade balance
B. trade defi
PROBLEM SET FOR CH 2 Suggested Solutions 1. See textbook and lecture notes. 2 BJM Q2.1 a. False. From Table 2-1, labour income in 2001 was 58% of GDP and capital income (including depreciation) was 30
PROBLEM SET FOR CH 8 Suggested Solutions November 10, 2004 1. BJM Q8.1 a. False. A smaller multiplier means that a higher level of government spending (or a larger tax cut) is required to achieve the
PROBLEM SET FOR CH 7 Suggested Solutions November 1, 2004 1. See textbook and lecture notes. 2 BJM Q7.1 a. False. Goods market equilibrium requires I S T - G Q - X A trade deficit could be due to high
PROBLEM SET FOR CH 4 Suggested Solutions Sept 30, 2004 1. See textbook and lecture notes. 2 BJM Q4.1 a. False. Income is a flow variable, that is, it is expressed per unit of time (income per week, in
PROBLEM SET FOR CH 3 Suggested Solutions Revised Sept 28, 2004 1. See textbook and lecture notes. 2 BJM Q3.1 a. True. In 2001, consumption totalled 57% of GDP, government spending was 21%, investment
PROBLEM SET FOR CH 6 Suggested Solutions October 18, 2004 1. See textbook and lecture notes. 2 BJM Q6.1 a. Uncertain. If we ignore measurement error, then countries with net capital inflows have a pos
PROBLEM SET FOR CH 9 Suggested Solutions November 23, 2004 1. See textbook and lecture notes. 2 BJM Q9.1 a. False. The participation rate in Canada has drifted upwards, thanks largely to the increasin
PROBLEM SET FOR CH 21 Suggested Solutions October 5, 2004 1. See textbook and lecture notes. 2 BJM Q5.1 a. True. This is true by assumption in our model, but it seems sensible. Introspection suggests
PROBLEM SET FOR CH 10 Suggested Solutions November 25, 2004 1. See textbook and lecture notes. 2 BJM Q 10.1 a. False. The aggregate supply curve says that the wage setting equation consistent with lab
PROBLEM SET FOR CH 12 Suggested Solutions January 25, 2004
1. See textbook and lecture notes. 2 BJM Q 12.1a-12.1g a. False. As a matter of arithmetic (see the notes on deriving Okun's Law), output mus
ECO202: Solutions to Test 1
Extra Credit:
1. Eugene Fama
2. Lars Peter Hansen
3. Robert Schiller
1. (20 points total) Suppose all markets in a closed-economy begin in equilibrium. The
government has d