Exam 5: Introduction to Macroeconomics

(Table) Look at the table of data for two countries; which country is likely to grow more rapidly? 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\%

The total of disposable income must be either spent or saved.

A double-dip recession is a recession that is twice as bad as the one that preceded it.

(Table) When you look at "Table: GDP Data for Two Countries," which government purchases do you see that represent a larger share of economic activity in which country? Country GDP Population C I G X-M Econia \ 90 billion 30 million \5 5 billion \ 3 billion \ 30 billion \ 2 billion Macland \ 200 billion 50 million \ 100 billion \ 30 billion \ 50 billion \ 20 billion

Which of the following is true in the case of the simple circular flow model with no savings?

The brand of car you buy is a topic of interest for macroeconomics.

Developing countries tend to place a higher value on environmental quality than developed countries.

Henry sells brownies to his classmates at college for cash. His income from this product is probably NOT part of the informal economy.

Total spending in an economy is the sum of:

The diagram that illustrates how households and businesses interact through product and resource markets is called the:

Gross domestic product measures the output produced by _____ using resources in the United States, while gross national product measures output produced by resources supplied by _____.

What component of U.S. GDP is usually negative in boom years?

To solve the double counting problem, economists include only final goods and services in the summing of gross domestic product.

The three types of consumption are:

The four main categories of spending included in the expenditure approach to calculating GDP are personal consumption, gross private domestic investment, government purchases, and net exports.

IKEA (a Swedish home furnishings company) produces desks that are made in Poland. The value of these imported desks sold at an IKEA store in the United States counts toward:

In the circular flow diagram, the counterclockwise direction shows the flow of _____, where households supply _____ and businesses supply _____.

In the income approach to calculating GDP, net interest is the interest paid by businesses plus the interest they receive.

The U.S. median household income in 2013 was about $65,000.

(Table) Look at the above table (Macroeconomic Data for Econoland); when is Econoland experiencing a double dip recession? Quarter GDP Unemployment rate 1 st 2014 S800 billion 5\% 2nd 2014 s808 billion 4\% 3 rd 2014 \ 808 billion 4\% 4th 2014 5800 billion 5\% 1 st 2015 S790 billion 6\% 2nd 2015 5790 billion 6\% 3rd 2015 \7 95 billion 5.5\% 4th 2015 s800 billion 5\% 1 st 2016 5800 billion 5\% 2nd 2016 S785 billion 6.5\% 3rd 2016 5780 billion 7\% 4th 2016 S790 billion 6\%