Exam 7: GDP and the CPI: Tracking the Macroeconomy

Government economists have adopted the _____ method of calculating the change in real GDP, which averages the GDP growth rate according to both an early base year and a late base year.

Stock in a company is:

A country's living standard is BEST measured by:

Real GDP per capita is:

The indirect ownership of physical capital refers to households owning:

Choose the best answer. Real GDP tends to overstate our economic well-being by including:

Use the following to answer questions: -(Table: Pizza Economy III) Use Table: Pizza Economy III. Considering 2010 as the base year, given that total population was 1,140 in 2010 and 1,380 in 2011, real GDP per capita between 2010 and 2011 grew at a rate of _____%.

In the product markets:

Use the following to answer questions: -(Figure 7-1: Circular-Flow Model) Use Figure 7-1: Circular-Flow Model. If the circular-flow model is in equilibrium (the sum of money flowing into each box is equal to the sum of the money flowing out of it) and there is an increase in investment spending, holding everything else constant, which outcome is likely to occur?

Use the following to answer questions: -(Figure 7-1: Circular-Flow Model) Use Figure 7-1: Circular-Flow Model. If the circular-flow model is in equilibrium (the sum of money flowing into each box is equal to the sum of the money flowing out of it) and there is an increase in exports, holding everything else constant, which outcome is likely to occur?

Investment spending is spending on:

In the circular-flow diagram, an organization that produces goods and services for sale is a:

Which item would NOT be included in this year's GDP?

Consider an economy that produces only DVDs and DVD players. If 10 DVDs are sold at $20 each and 5 DVD players are sold at $100 each, then nominal GDP is:

An example of investment spending is the purchase of a:

The inflation-adjusted measure of aggregate output typically used by economists is called:

A bond is:

In the circular-flow diagram, households:

A share in the ownership of a company is a(n):

Investment spending is spending on: