EC250 Final Exam Practice Test Latest 2025 WITH 300 Questions and Correct Answer (brand new!)

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EC250 Final Exam Practice Test Latest 2025
WITH 300 Questions and Correct Answer
(brand new!)

8. When Lehman Brothers failed, the result was a panic in
the credit market and it was difficult to obtain credit. As a
result




a) investment declined

b) output fell

c) consumers became pessimistic about the future and cut
consumption

d) all of the above ......answer.....d) all of the above




1. The biggest economic problem at present is

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a) decline in output


b) high inflation


c) bear market in stocks


d) high unemployment ......answer.....b) high inflation



2. The effect of last two recession on the US unemployment

was, compared to unemployment in Canada




a) greater in both the Pandemic and the Great recessions


b) greater in the Pandemic recession but not in the Great
recession

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c) smaller in the Pandemic recession but greater in the

Great recession

d) smaller in both the Pandemic and the Great recessions

......answer.....a) greater in both the Pandemic and the

Great

recessions




3. Soft landing is:




a) return of the economy to normal, without a recession


b) gradual reduction in inflation, at the cost of a recession

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c) return of inflation to the Bank of Canada target over

several years

d) rapid return of inflation to the Bank of Canada target

(within a year) ......answer.....a) return of the economy to

normal, without a

recession




4. When inflation in Canada reached around 8%, the Bank of

Canada




a) always raised the Bank rate at least 2% above the rate of
inflation