Given the following information, aggregate income equals: \[\begin{array} {| l | r |} \hline \text { Profits } & \$ 700 \\ \hline \text { Rent } & \$ 400 \\ \hline \text { Compensation to employees } & \$ 2,500 \\ \hline \text { Interest } & \$ 300 \\ \hline \text { Taxes } & \$ 1,000 \\ \hline \text { Transfer payments } & \$ 500\\ \hline \end{array}\]

A) $2,900. B) $3,400. C) $3,900. D) $4,400. A) $2,900. B) $3,400. C) $3,900. D) $4,400. C

What are net exports using the information shown? $\begin{array}{ |l | c | } \hline&\text { In billims of dallars }\\ \hline \text { Consurngtion } & 5,100 \\ \hline \text { Irnvestment } & 1,100 \\ \hline \text { Transfer payments } & 1,050 \\ \hline \text { Government Purchases } & 1,400 \\ \hline \text { Exports } & 850 \\ \hline \text { Imports } & 950 \\ \hline \text { Net foreign factor incorne } & 20 \\ \hline \end{array}$

A) ?100 B) 100 C) 850 D) 950 A) ?100 B) 100 C) 850 D) 950

What is the GNP using the table shown? \[\begin{array} { | l | c | } \hline & \text { In billions uf dallars } \\ \hline \text { Consurnption1 } & 3,600 \\ \hline \text { Grvestment } & 800 \\ \hline \text { Transfer payments } & 750 \\ \hline \text { Government Purchases } & 1,000 \\ \hline \text { Exports } & 650 \\ \hline \text { Imports } & 450 \\ \hline \text { Net foreipn factor income } & - 30 \\ \hline \end{array}\]

A) 5,570 B) 5,630 C) 6,220 D) 6,250 A) 5,570 B) 5,630 C) 6,220 D) 6,250

Refer to the table shown. $\begin{array} { |l | c |} \hline & \text { In trillims of dallars } \\ \hline \text { Consurnotion } & 4.2 \\ \hline \text { Irvestment } & 1.2 \\ \hline \text { Government Purchases } & 1.5 \\ \hline \text { Depreciation } & 0.4 \\ \hline \text { GDP } & 6.6 \\ \hline \end{array}$ What is the economy's net domestic product?

A) $6.2 trillion B) $6.6 trillion C) $7.0 trillion D) Net domestic product cannot be computed without the data for net exports. A) $6.2 trillion B) $6.6 trillion C) $7.0 trillion D) Net domestic product cannot be computed without the data for net exports.

Given the following information that includes all costs of the firm, we know that: \[\begin{array} {| l | r| } \hline \text { Value of final sales } & \$ 1,000 \\ \hline \text { Rent } & \$ 200 \\ \hline \text { Compensation to employees } & \$ 500 \\ \hline \text { Interest } & \$ 500 \\ \hline \end{array}\]

A) profit is -$200. B) profit is $200. C) there is a loss that must be subtracted from final sales so that income equals output. D) income does not equal the value of final output. A) profit is -$200. B) profit is $200. C) there is a loss that must be subtracted from final sales so that income equals output. D) income does not equal the value of final output.

Exam 25: Measuring and Describing the Aggregate Economy

Given the following information, aggregate income equals: Profits \ 700 Rent \ 400 Compensation to employees \ 2,500 Interest \ 300 Taxes \ 1,000 Transfer payments \ 500

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(Multiple Choice)

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Question 1

Correct Answer:

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C

What is real wealth?

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Question 2

Correct Answer:

Verified

Real wealth is the value of the productive capacity of the assets of an economy measured by the goods and services it can produce now and in the future.

If real GDP has increased by 3 percent and nominal GDP has increased by 5 percent, then:

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Question 3

Correct Answer:

Verified

C

If the price of clothing (which accounts for 5 percent of total expenditures in the CPI basket), rises by 10 percent in one year while the prices of all other goods remain constant, by how much will the CPI rise?

(Multiple Choice)

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Question 4

What are net exports using the information shown? In billims of dallars Consurngtion 5,100 Irnvestment 1,100 Transfer payments 1,050 Government Purchases 1,400 Exports 850 Imports 950 Net foreign factor incorne 20

(Multiple Choice)

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Question 5

Gross domestic product (GDP)is the total market value of the final goods and services produced by an economy in a one-year period.

(True/False)

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Question 6

Net exports is the key to the equality of aggregate expenditures and aggregate income.

(True/False)

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Question 7

Aggregate income is the sum of:

(Multiple Choice)

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Question 8

Double counting in the national income accounts will be avoided if GDP is computed by totaling all:

(Multiple Choice)

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Question 9

For the purposes of calculating GDP, investment includes:

(Multiple Choice)

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Question 10

Government purchases that are counted as part of GDP can be less than the government's total budget because:

(Multiple Choice)

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Question 11

A price index in years beyond the base year:

(Multiple Choice)

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Question 12

Comparisons of GDP levels across countries are least accurate when:

(Multiple Choice)

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Question 13

What is the GNP using the table shown? In billions uf dallars Consurnption1 3,600 Grvestment 800 Transfer payments 750 Government Purchases 1,000 Exports 650 Imports 450 Net foreipn factor income -30

(Multiple Choice)

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Question 14

Gross domestic product equals the sum of consumption, investment, and government purchases.

(True/False)

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Question 15

Refer to the table shown. In trillims of dallars Consurnotion 4.2 Irvestment 1.2 Government Purchases 1.5 Depreciation 0.4 GDP 6.6 What is the economy's net domestic product?

(Multiple Choice)

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Question 16

Given the following information that includes all costs of the firm, we know that: Value of final sales \ 1,000 Rent \ 200 Compensation to employees \ 500 Interest \ 500

(Multiple Choice)

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Question 17

Which of the following is not included in employee compensation?

(Multiple Choice)

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Question 18

If an economy produces 100 pencils valued at $0.25 each and 500 sheets of ruled paper at $0.01 each, using GDP as the measure of output:

(Multiple Choice)

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Question 19

If nominal GDP is $10 trillion and real GDP is $11 trillion, the GDP deflator is:

(Multiple Choice)

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Question 20

Exam 25: Measuring and Describing the Aggregate Economy

Given the following information, aggregate income equals: Profits \ 700 Rent \ 400 Compensation to employees \ 2,500 Interest \ 300 Taxes \ 1,000 Transfer payments \ 500

What is real wealth?

If real GDP has increased by 3 percent and nominal GDP has increased by 5 percent, then:

If the price of clothing (which accounts for 5 percent of total expenditures in the CPI basket), rises by 10 percent in one year while the prices of all other goods remain constant, by how much will the CPI rise?

What are net exports using the information shown? In billims of dallars Consurngtion 5,100 Irnvestment 1,100 Transfer payments 1,050 Government Purchases 1,400 Exports 850 Imports 950 Net foreign factor incorne 20

Gross domestic product (GDP)is the total market value of the final goods and services produced by an economy in a one-year period.

Net exports is the key to the equality of aggregate expenditures and aggregate income.

Aggregate income is the sum of:

Double counting in the national income accounts will be avoided if GDP is computed by totaling all:

For the purposes of calculating GDP, investment includes:

Government purchases that are counted as part of GDP can be less than the government's total budget because:

A price index in years beyond the base year:

Comparisons of GDP levels across countries are least accurate when:

What is the GNP using the table shown? In billions uf dallars Consurnption1 3,600 Grvestment 800 Transfer payments 750 Government Purchases 1,000 Exports 650 Imports 450 Net foreipn factor income -30

Gross domestic product equals the sum of consumption, investment, and government purchases.

Refer to the table shown. In trillims of dallars Consurnotion 4.2 Irvestment 1.2 Government Purchases 1.5 Depreciation 0.4 GDP 6.6 What is the economy's net domestic product?

Given the following information that includes all costs of the firm, we know that: Value of final sales \ 1,000 Rent \ 200 Compensation to employees \ 500 Interest \ 500

Which of the following is not included in employee compensation?

If an economy produces 100 pencils valued at $0.25 each and 500 sheets of ruled paper at $0.01 each, using GDP as the measure of output:

If nominal GDP is $10 trillion and real GDP is $11 trillion, the GDP deflator is:

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