Exam 5: Introduction to Macroeconomics

On average, the United States falls into recession about every 10 years.

The national income and product accounts ignore nonmarket transactions, investments in human capital, and the use of people's leisure time.

Which of the following values is an example of a nonmarket transaction NOT included in the national income and product accounts?

Which of the following sequences is in the correct order according to the business cycle?

(Table) According to the table, what is the value of this country's net exports? Personal consumption expenditures \ 900 Personal taxes \ 180 Government expenditures \ 300 Exports \ 40 Imports \ 75 Interest income \ 60 Depreciation \ 50 Gross private domestic investment \ 200

Which of the following describes the informal economy?

In the formula for GDP (GDP = C + I + G + (X - M)), what does M represent?

Crude oil produced in Nigeria by Exxon-Mobil, a company whose headquarters are located in the United States, would be included in U.S. GDP.

Marco is an undocumented worker who follows the harvest, picking vegetables. His income from this work is probably part of the informal economy.

Suppose an economy has historically grown at a rate of 1.25%. Economic activity decreased every quarter over the past year, but the decline stopped this quarter. The economy is expected to grow at a rate of 1.4% in the near future, but monetary authorities are concerned that inflation may increase. This economy is probably in the _____ stage of the business cycle.

GNP includes output produced _____ but it does not include output produced _____.

Investment in structures, equipment, software, and net inventory is known as:

A jobless recovery occurs when an economic recovery produces too few jobs to significantly reduce the unemployment rate.

If, in the past, you have always painted your own house but now you hire a painting contractor to do the work, what effect does this have on GDP?

Suppose the National Activity Index of the Federal Reserve Bank of Chicago increased from -0.29 in May to -0.13 in June. Which of the following is the best interpretation of this finding?

Services constitute approximately _____ of GDP.

Simon Kuznets:

The study of macroeconomics as a specific discipline can be attributed to:

Which of the following items would be considered a durable good?

The informal economy in the United States is estimated to be around 10% of GDP.