Exam 5: Introduction to Macroeconomics

Greenhouse gas emissions are included in the GDP accounts.

Which of the following is an example of gross private domestic investment?

Which of the following is NOT included in gross private domestic investment?

Gross private domestic investment is an important factor in shaping the turning points of the business cycle, especially at the troughs.

At one time, Pittsburgh, Pennsylvania, was known for its poor air quality. Locals said that a man wearing a white shirt when he walked into the city would have a black shirt when he left. Since that time, the city has greatly reduced its air and water pollution. As a result of cleaner air and water:

(Table) According to the table, net exports of goods and services are equal to: GDP Expenditures for 2010 Expenditure Billions Personal consumption \ 10,353.5 Gross private domestic investment 1,769.1 Exports 1,746.1 Imports 2,251.5 Government purchases 2,975.1 Capital consumption allowance 1,030.2

A jobless recovery is an economic expansion accompanied by a decrease in the number of unemployed workers.

(Table) Look at the table of data for two countries; which statement correctly identifies the country in which consumers are better off on average and why? Country GDP for 2016 Population Consumer purchases as a share of GDP Investment as a share of GDP Econoland S40 billion 20 million 70\% 15\% Macroland \ 80 billion 42 million 80\% 9\%

Which of the following transactions would NOT be included in the GDP calculation of a country?

(Table) Suppose a loaf of bread goes through the following stages of production, with the values noted at the end of each stage: Stage Value 1. Farmer's wheat \ 0.65 2. Miller's flour \ 1.20 3. Baker's bread \ 1.80 4. Grocer's bread \ 2.65 The sale of one loaf of bread adds _____ to GDP.

Which of the following would be an example of a nonmarket activity?

In the national income and product accounts system, the two main approaches to measuring the size of the economy are:

If you hire a lawn service to mow your grass, the money you pay for the service is included in the GDP, whereas if you mow your own lawn, the value of this service is not included in the GDP. This fact represents a criticism of the GDP's focus on:

During a recession, firms hire more workers to take advantage of lower wages.

Which of the following is included in personal consumption expenditures?

We are most likely to see a recession if interest rates on long-term bonds are:

The capital consumption allowance:

Suppose the National Activity Index of the Federal Reserve Bank of Chicago drops to -0.83 this month after being above +0.36 for the previous three months. This movement in the index indicates that:

(Table) According to the table, net domestic product is: Category Billions of Dollars Proprietors' income 300 Capital consumption allowance 440 Federal government purchases of goods and services 200 Compensation of employees 800 Personal consumption expenditures 950 Corporate profits 90 Exports 60 Gross private domestic investment 500 Rental income 30 State and local government purchases of goods and services 150 Net interest 100 Federal government deficit 250 Imports 90

Which of the following is NOT a criticism of the dating of business cycles by the National Bureau of Economic Research (NBER)?