Macro Help. Asap.

[ajooo]

im totally lost right now doing some of my modules. i've read the book countless times and nothing seems to get absorbed and i cant figure out any of the answers. these are the questions im having trouble on. Thanks in advance for anyone that can help me out.

1) On a graph showing real national income on the vertical axis and time on the horizontal axis, the trend-line would probably be a good approximation of the:
A)path of potential output.
B)unemployment rate.
C)business cycle.
D)inflation rate.
E)distribution of income.

2) Short-run fluctuations in real GDP around its trend value are:
A)generally ignored by economists, because these fluctuations are constant and predictable.
B)unimportant to the study of macroeconomics.
C)generally ignored by economists, because these fluctuations do not affect behaviour of other variables such as the unemployment rate.
D)referred to in economics as "the business cycle".
E)referred to in economics as "background noise".

3)If 0.75 U.S. dollars can be exchanged for one Canadian dollar, we say that the Canadian-U.S. exchange rate is:
A)1.25.
B)75.
C)1.33.
D)1.0.
E)0.75.

4)In some macroeconomic analysis, it is common to treat the level of productivity as roughly constant. This is a justifiable assumption in:
A)the short run.
B)the long run and the short run.
C)neither the long run nor the short run.
D)the long run.
E)macroeconomics but not microeconomics.

[Little Dragon]

I am by no means qualified to answer any of these, but a quick google search on how to calculate exchange rate gave me this answer.

I think number 3 is C
U.S.-to-Canada exchange rate = 1/0.75 = 1.333...

[tobslau]

Originally posted by ajooo
im totally lost right now doing some of my modules. i've read the book countless times and nothing seems to get absorbed and i cant figure out any of the answers. these are the questions im having trouble on. Thanks in advance for anyone that can help me out.

1) On a graph showing real national income on the vertical axis and time on the horizontal axis, the trend-line would probably be a good approximation of the:
A)path of potential output.
B)unemployment rate.
C)business cycle.
D)inflation rate. - Should be the answer - as real national income include inflation along with interest rate
E)distribution of income.

2) Short-run fluctuations in real GDP around its trend value are:
A)generally ignored by economists, because these fluctuations are constant and predictable.
B)unimportant to the study of macroeconomics.
C)generally ignored by economists, because these fluctuations do not affect behaviour of other variables such as the unemployment rate. - I would say this answer because short run fluctuations are not constant and unpredictable
D)referred to in economics as "the business cycle".
E)referred to in economics as "background noise".

3)If 0.75 U.S. dollars can be exchanged for one Canadian dollar, we say that the Canadian-U.S. exchange rate is:
A)1.25.
B)75.
C)1.33. - As little dragon said
u just 1 / .75 = 1.33
D)1.0.
E)0.75.

4)In some macroeconomic analysis, it is common to treat the level of productivity as roughly constant. This is a justifiable assumption in:
A)the short run.
B)the long run and the short run.
C)neither the long run nor the short run.
D)the long run. - LONG RUN is constant because productivity levels out
E)macroeconomics but not microeconomics.

Made changes in the quote
take them with a grain of salt, 80% sure i'm right

[aklalani]

D
C
C
D