Exam 6: Introduction to Macroeconomics and Gross Domestic Product

Consider the following data to answer the questions: Country GDP Population A \ 32,000 1,500 B \ 20,000 1,000 C \ 10,000 500 D \ 10,000 2,000 E \ 8,000 800 -If these are the only five countries in the world, then country B produces _______of world gross domestic product GDP).

The contraction phase of a business cycle is best described as the time

Gross domestic product GDP) is an important indicator because it is used as a measure of all of the following EXCEPT

Explain why per capita gross domestic product GDP) is a better measure of a nation's standard of living than national GDP.

Consider the following data to answer the questions: Country GDP Population A \ 32,000 1,500 B \ 20,000 1,000 C \ 10,000 500 D \ 10,000 2,000 E \ 8,000 800 -Although countries C and D have the same level of gross domestic product (GDP), country C has a level of per capita GDP that is ________ times that of country D.

The state of Florida spends $3 million to repave highways. This is included in the_______ category of gross domestic product GDP).

Which of the following is a topic of macroeconomics?

The investment spending category of gross domestic product GDP) does NOT include

Consider the following data to answer the questions: Country GDP Population A \ 32,000 1,500 B \ 20,000 1,000 C \ 10,000 500 D \ 10,000 2,000 E \ 8,000 800 -Which two countries have the same average living standard?

Consider the following data, where gross domestic product (GDP) values are measured in millions of dollars, to answer the questions: Year Nominal GDP Real GDP GDP Deflator 2009 \ 500 100 2010 \ 551.2 106 2011 \ 600.6 \ 546 2012 \ 600.6 120 -What is the value of nominal gross domestic product GDP) in 2012? Round to the nearest second decimal.

To avoid double counting when calculating gross domestic product GDP), it is best to count

When gross domestic product GDP) increases, national income_______ and national output .

If over a period of time real gross domestic product GDP) decreases while nominal GDP increases, then this implies

Which of the following is a sign that an economy is in poor health?

The long-run average growth rate of real gross domestic product GDP) in the U.S. economy is about

Real gross domestic product GDP) is equal to

Use the information in the table below to calculate the real 2015 gross domestic product GDP), in 2009 dollars. Explain how the calculation is performed, and the reasoning behind it. U.S. Nominal GDP and Price Level, 2006-2015 Year Nominal GDP (billions of dollars) Price Level (GDP deflator) 2006 13,855.9 95 2007 14,477.6 97 2008 14,718.6 99 2009 14,418.7 100 2010 14,964.4 101 2011 15,517.9 013 2012 16,155.3 105 2013 16,663.2 107 2014 17,348.1 109 2015 17,937.8 110

Many economists say that the Great Recession of 2007-2009, rather than being simply an unusually long cyclical contraction, produced permanent changes in the economy. How is this claim supported by the graph, shown below, of U.S. real gross domestic product GDP) since the year 1993?

Explain why it is reasonable to count not just goods but also services as part of gross domestic product GDP).

If nominal gross domestic product GDP) changed by 6 percent and the price level changed by 2 percent, then real GDP changed by