When there is a boom, the stock market is in a good shape overall.

Suppose stock prices start falling. Then we can predict that in the near future there will be a  .

Suppose the average workweeks start becoming longer. Then we can predict that in the near future there will be a  .

There is a rise in purchasing intentions by the households.

This event will result in:

In 2008-2009 there was a major recession due to the housing market crash in the US. As a result, we can predict that most likely corporate profits increased.

There is a significant fall in the interest rate.

This event will result in:

Suppose the it becomes much easier for the people to move from one industry to another.

This event will:

Now, instead of carrot, suppose you have P_2 Treat it in exactly the same way as you would treat a carrot!

P_2 + 0.95P_2 = P_2

Enter a number in the box.

If you have one carrot, and then you find half a carrot, you will have carrots.

Hint: this isn't a trick question! It's meant to warm you up for the next ones.

Looking at the above table, what might explain the difference in proportion of consumer's budgets (the relative weights) for shelter in Quebec and Ontario?

Hint: notice that the table shows relative values (in percentages).