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To what extent do you accept the eight economic goals stated and described in this chapter? What priorities do you assign to them?

KEY QUESTION Indicate whether each of the following statements applies to microeconomics or macroeconomics:

a. The unemployment rate in Canada was 6.5 percent in January 2001.

b. The Alpo dog food plant in Bowser, Alberta, laid off 15 workers last month.

c. An unexpected freeze in central Florida reduced the citrus crop and caused the price of oranges to rise.

d. Canadian output, adjusted for inflation, grew by 4.7 percent in 2000.

e. Last week the Royal Bank lowered its interest rate on business loans by one-half of 1 percentage point.

f. The consumer price index rose by 2.7 percent in 2000.

KEY QUESTION Identify each of the following as either a positive or a normative statement:

a. The high temperature today was 30 degrees.

b. It was too hot today.

c. Other things equal, higher interest rates reduce the total amount of borrowing.

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