Question 1

The implicit GDP price deflator can be defined as

Accepted Answer

A)  (Nominal GDP + Real GDP) / 2. 
B)  (Nominal GDP / Real GDP) * 100. 
C)  Nominal GDP - Real GDP. 
D)  (Real GDP / Nominal GDP) * 100. 
E)  the consumer price index. 
A)  (Nominal GDP + Real GDP) / 2. 
B)  (Nominal GDP / Real GDP) * 100. 
C)  Nominal GDP - Real GDP. 
D)  (Real GDP / Nominal GDP) * 100. 
E)  the consumer price index. B

Question 2

When an unemployed worker becomes discouraged and leaves the labour force,

Accepted Answer

A)  the unemployment rate increases. 
B)  the labour force participation rate increases. 
C)  the employment/population ratio decreases. 
D)  the unemployment rate decreases. 
E)  the employment/population ratio increases. 
A)  the unemployment rate increases. 
B)  the labour force participation rate increases. 
C)  the employment/population ratio decreases. 
D)  the unemployment rate decreases. 
E)  the employment/population ratio increases. D

Question 3

In recent years, which of the following has comprised less than 5% of GDP?

Accepted Answer

A)  imports 
B)  exports 
C)  net exports 
D)  investment 
E)  government spending 
A)  imports 
B)  exports 
C)  net exports 
D)  investment 
E)  government spending C

Question 4

For the following question(s), suppose that an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below.
  
-If Year 1 is the base year, the GDP price deflator for Year 2 is approximately

Accepted Answer

A)  100.0. 
B)  126.3. 
C)  131.3. 
D)  181.0. 
E)  211.0. 
A)  100.0. 
B)  126.3. 
C)  131.3. 
D)  181.0. 
E)  211.0.

Question 5

The product approach to calculating GDP values government production at

Accepted Answer

A)  market prices. 
B)  its cost of production. 
C)  its estimated value to society. 
D)  the total amount of taxes it collects. 
E)  its intermediate costs. 
A)  market prices. 
B)  its cost of production. 
C)  its estimated value to society. 
D)  the total amount of taxes it collects. 
E)  its intermediate costs.

Question 6

For the following question(s), suppose that an economy produces only food and clothing, and that price and quantity data are given in the table below.
  
-Suppose that Year 2 is the base year. Year 1 real GDP is

Accepted Answer

A)  $200. 
B)  $270. 
C)  $310. 
D)  $390. 
E)  $450. 
A)  $200. 
B)  $270. 
C)  $310. 
D)  $390. 
E)  $450.

Question 7

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:
  
-What is the real GDP in year 1 using base year 1?

Accepted Answer

A)  $418 
B)  $300 
C)  $360 
D)  $338 
E)  $294 
A)  $418 
B)  $300 
C)  $360 
D)  $338 
E)  $294

Question 8

For the following question(s), suppose that an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below.
  
-If Year 1 is the base year, the CPI for Year 2 is approximately

Accepted Answer

A)  100.0. 
B)  126.3. 
C)  131.3. 
D)  181.0. 
E)  211.0. 
A)  100.0. 
B)  126.3. 
C)  131.3. 
D)  181.0. 
E)  211.0.

Question 9

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:
  
-What is the real GDP in year 2 using base year 2?

Accepted Answer

A)  $418 
B)  $300 
C)  $360 
D)  $338 
E)  $414 
A)  $418 
B)  $300 
C)  $360 
D)  $338 
E)  $414

Question 10

Suppose that the government collects $3 million in taxes, pays $2 million in Employment Insurance benefits, pays $0.5 million in interest on the national debt, and pays workers $1 million to sit at their desks and work as little as possible. The government's contribution to GDP is

Accepted Answer

A)  $0. 
B)  $1 million. 
C)  $1.5 million. 
D)  $3 million. 
E)  $3.5 million. 
A)  $0. 
B)  $1 million. 
C)  $1.5 million. 
D)  $3 million. 
E)  $3.5 million.

Question 11

The expenditure approach is calculated as

Accepted Answer

A)  C + I + G. 
B)  C + I + X. 
C)  C + I + G + NX. 
D)  C + I + NX. 
E)  the value approach. 
A)  C + I + G. 
B)  C + I + X. 
C)  C + I + G + NX. 
D)  C + I + NX. 
E)  the value approach.

Question 12

The three approaches to measuring GDP are called the

Accepted Answer

A)  accounting approach, the income approach, and the expenditure approach. 
B)  product approach, the cost approach, and the expenditure approach. 
C)  product approach, the income approach, and the expenditure approach. 
D)  accounting approach, the statistical approach, and the income approach. 
E)  accounting approach, the statistical approach, and the product approach. 
A)  accounting approach, the income approach, and the expenditure approach. 
B)  product approach, the cost approach, and the expenditure approach. 
C)  product approach, the income approach, and the expenditure approach. 
D)  accounting approach, the statistical approach, and the income approach. 
E)  accounting approach, the statistical approach, and the product approach.

Question 13

Gross domestic product is defined as

Accepted Answer

A)  the value of all goods produced in the economy in a given time period within the borders of Canada. 
B)  the market value of all goods and services produced in the economy during a given time period within the borders of Canada. 
C)  the total market value of the final goods and services produced during a given time period within the borders of Canada. 
D)  the total market value of all the intermediate goods and services produced in the economy for a given time period within the borders of Canada. 
E)  the market value of all goods and services produced by Canadian residents domestically and abroad. 
A)  the value of all goods produced in the economy in a given time period within the borders of Canada. 
B)  the market value of all goods and services produced in the economy during a given time period within the borders of Canada. 
C)  the total market value of the final goods and services produced during a given time period within the borders of Canada. 
D)  the total market value of all the intermediate goods and services produced in the economy for a given time period within the borders of Canada. 
E)  the market value of all goods and services produced by Canadian residents domestically and abroad.

Question 14

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:
  
-What is the real GDP in year 2 using base year 1?

Accepted Answer

A)  $418 
B)  $300 
C)  $360 
D)  $338 
E)  $294 
A)  $418 
B)  $300 
C)  $360 
D)  $338 
E)  $294

Question 15

Suppose that GDP is equal to 1,000, national saving is equal to 200, the current account deficit is equal to 100, and the government budget deficit is equal to 50. Investment must equal

Accepted Answer

A)  150. 
B)  200. 
C)  250. 
D)  300. 
E)  350. 
A)  150. 
B)  200. 
C)  250. 
D)  300. 
E)  350.

Question 16

To calculate the change in chain-weighted real GDP from one year to the next, we use

Accepted Answer

A)  first-year prices. 
B)  second-year prices. 
C)  the percentage change in prices from the first year to the second. 
D)  average prices over the two years. 
E)  base-year prices. 
A)  first-year prices. 
B)  second-year prices. 
C)  the percentage change in prices from the first year to the second. 
D)  average prices over the two years. 
E)  base-year prices.

Question 17

For the following question(s), suppose that an economy produces only food and clothing, and that price and quantity data are given in the table below.
  
-Suppose that Year 1 is the base year. Year 2 real GDP is

Accepted Answer

A)  $200. 
B)  $270. 
C)  $310. 
D)  $390. 
E)  $450. 
A)  $200. 
B)  $270. 
C)  $310. 
D)  $390. 
E)  $450.

Question 18

Construction of chain-weighted real GDP employs the technique of a(n)

Accepted Answer

A)  Herfindahl index. 
B)  Fisher index. 
C)  Gini index. 
D)  body mass index. 
E)  inflation rate index. 
A)  Herfindahl index. 
B)  Fisher index. 
C)  Gini index. 
D)  body mass index. 
E)  inflation rate index.

Question 19

Pamela's bakery produces 500 loaves of bread in a given year. Pamela pays $100 for flour and yeast, pays $600 in wages, pays $50 in interest on an existing loan, and pays $100 in taxes to the government. One of Pamela's bread slicing machines, which cost $75 each, wears out over the course of the year and must be scrapped. Pamela's profit for the year equals $75. Pamela's bread, therefore, sells for

Accepted Answer

A)  $0.50 per loaf. 
B)  $1.00 per loaf. 
C)  $2.00 per loaf. 
D)  $1.50 per loaf. 
E)  cannot tell, insufficient information. 
A)  $0.50 per loaf. 
B)  $1.00 per loaf. 
C)  $2.00 per loaf. 
D)  $1.50 per loaf. 
E)  cannot tell, insufficient information.

Question 20

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:
  
-What is approximately the growth rate of real GDP using base year 1?

Accepted Answer

A)  13% 
B)  20% 
C)  33% 
D)  39% 
E)  25% 
A)  13% 
B)  20% 
C)  33% 
D)  39% 
E)  25%

The implicit GDP price deflator can be defined as

When an unemployed worker becomes discouraged and leaves the labour force,

In recent years, which of the following has comprised less than 5% of GDP?

For the following question(s), suppose that an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below. -If Year 1 is the base year, the GDP price deflator for Year 2 is approximately

The product approach to calculating GDP values government production at

For the following question(s), suppose that an economy produces only food and clothing, and that price and quantity data are given in the table below. -Suppose that Year 2 is the base year. Year 1 real GDP is

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is the real GDP in year 1 using base year 1?

For the following question(s), suppose that an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below. -If Year 1 is the base year, the CPI for Year 2 is approximately

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is the real GDP in year 2 using base year 2?

Suppose that the government collects $3 million in taxes, pays $2 million in Employment Insurance benefits, pays $0.5 million in interest on the national debt, and pays workers $1 million to sit at their desks and work as little as possible. The government's contribution to GDP is

The expenditure approach is calculated as

The three approaches to measuring GDP are called the

Gross domestic product is defined as

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is the real GDP in year 2 using base year 1?

Suppose that GDP is equal to 1,000, national saving is equal to 200, the current account deficit is equal to 100, and the government budget deficit is equal to 50. Investment must equal

To calculate the change in chain-weighted real GDP from one year to the next, we use

For the following question(s), suppose that an economy produces only food and clothing, and that price and quantity data are given in the table below. -Suppose that Year 1 is the base year. Year 2 real GDP is

Construction of chain-weighted real GDP employs the technique of a(n)

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is approximately the growth rate of real GDP using base year 1?

Introduction

Business Cycle Measurement

Consumer and Firm Behaviour: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

A Monetary Intertemporal Model: Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters

Exam 2: Measurement

The implicit GDP price deflator can be defined as

When an unemployed worker becomes discouraged and leaves the labour force,

In recent years, which of the following has comprised less than 5% of GDP?

For the following question(s), suppose that an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below. -If Year 1 is the base year, the GDP price deflator for Year 2 is approximately

The product approach to calculating GDP values government production at

For the following question(s), suppose that an economy produces only food and clothing, and that price and quantity data are given in the table below. -Suppose that Year 2 is the base year. Year 1 real GDP is

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is the real GDP in year 1 using base year 1?

For the following question(s), suppose that an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below. -If Year 1 is the base year, the CPI for Year 2 is approximately

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is the real GDP in year 2 using base year 2?

Suppose that the government collects $3 million in taxes, pays $2 million in Employment Insurance benefits, pays $0.5 million in interest on the national debt, and pays workers $1 million to sit at their desks and work as little as possible. The government's contribution to GDP is

The expenditure approach is calculated as

The three approaches to measuring GDP are called the

Gross domestic product is defined as

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is the real GDP in year 2 using base year 1?

Suppose that GDP is equal to 1,000, national saving is equal to 200, the current account deficit is equal to 100, and the government budget deficit is equal to 50. Investment must equal

To calculate the change in chain-weighted real GDP from one year to the next, we use

For the following question(s), suppose that an economy produces only food and clothing, and that price and quantity data are given in the table below. -Suppose that Year 1 is the base year. Year 2 real GDP is

Construction of chain-weighted real GDP employs the technique of a(n)

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: -What is approximately the growth rate of real GDP using base year 1?

Introduction

Business Cycle Measurement

Consumer and Firm Behaviour: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

A Monetary Intertemporal Model: Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters