EC250

Long-run economic growth is the process by which productivity increases

• A) federal tax revenues.

• B) the employment rate.

• C) the average standard of living.

• D) the size of the labour force.

The openness of the Canadian economy has

• A) increased over time.

• B) decreased over the past 30 years, following a 50-year increase.

• C) decreased over time.

• D) remained fairly consistent over time.

Which of the following is an example of a fiscal policy?

• A) Businesses begin to export and import more products and services.

• B) The Bank of Canada increases interest rates.

• C) The federal government increases income tax rates on people earning more than $250 000.

• D) The Bank of Canada takes action to greatly decrease the money supply.

Answer explanation

Fiscal policy refers to the use of government spending and taxation to influence the economy. In this case, the federal government increasing income tax rates on high earners is an example of fiscal policy. By increasing tax rates on higher income individuals, the government aims to generate more revenue and potentially redistribute wealth. This action can have an impact on the overall economy by affecting consumption, saving, and investment patterns.

Which of the following is an example of a fiscal policy?

• A) The Bank of Canada decreases interest rates during an economic recession.

• B) Businesses begin to lay off employees and cut back on spending during an economic recession.

• C) The federal government increases infrastructure spending during an economic recession.

• D) The Bank of Canada takes action to increase the money supply during an economic recession.

As a percentage of GDP, Canadian imports have been ________ and U.S. imports have been ________ since 1980.

• A) declining; growing

• B) declining; declining

• C) growing; growing

• D) growing; declining

A common measure of the standard of living is

• A) the labour force participation rate.

• B) real GDP per capita.

• C) the average duration of a typical business cycle.

• D) labour productivity.

Long-run economic growth is the process by which productivity increases

• A) federal tax revenues.

• B) the employment rate.

• C) the average standard of living.

• D) the size of the labour force.

Long-run economic growth is the process by which productivity increases

• A) federal tax revenues.

• B) the employment rate.

• C) the average standard of living.

• D) the size of the labour force.

Long-run economic growth is the process by which productivity increases

• A) federal tax revenues.

• B) the employment rate.

• C) the average standard of living.

• D) the size of the labour force.

Long-run economic growth is the process by which productivity increases

• A) federal tax revenues.

• B) the employment rate.

• C) the average standard of living.

• D) the size of the labour force.