| Question | Answer |
| 1. Why is it important that only the final value of goods and services is measured in calculating the GDP? | multiple counting.
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2. The full employment in Canada has a natural rate of unemployment which is between | 6 and 7% .
| 3. What is the equation for the unemployment rate? | unemployment rate= #of unemployed/labour force x 100.
| 4. The ability to obtain quantitative or qualitative products/service to meet needs or wants is the definition of? | Standard of living.
| 5. Population size is an example of... | Drawbacks to GDP. .
| 6. The employment situation that is insufficient in some way for the worker relative to a standard is known as? | under employment
| 7. What are the components of the GDP expenditure formula? | C=consumption, G= government purchases, I= investment, (X-M)= net exports.
| 8. What are the 4 layers of the “onion” that have to be identified in order to consider the unemployment rate | Population, institutionalized, eligible, labour force.
| 9.The total that is spent on all final goods and services in a year is known as | the expenditure approach.
| 10. ____________ ______________ allow us to look at the role and impact of specific industries on the whole economy. | Performance measures.
| 11. What is the unemployment rate given: the labour force is 24,946,000 and the number of unemployed is 1,528,000. | unemployment rate of 6.1.
| 12. What are the 2 formulas needed in order to calculate the inflation rate? | price index (=$ of basket in current year/$ of basket in base year x100) and inflation rate (=CPIyr 2-CPI yr1/ CPI yr1 x100).
| 13. What does CPI stand for? | Consumer Price Index
| 14. Inflation means that all prices are rising, but at different rates. | False
| 15. A country's consumer price index was 124.0 at the end of year 1 and 130.7 at the end of year 2. What is the rate of inflation during year 2? | 5.4 percent |
