Exam 23: Measuring a Nations Income

Table 23-1 The country of Batavia produces only chocolates and watches.Below is a table with recent information on Batavia production and prices.The base year is 2009. Prices and Quantities -Refer to Table 23-1. What was the inflation rate for 2011? Show your work.

In years of economic contraction,firms throughout the economy increase their production of goods and services,employment rises,and jobs are easy to find.

Changes in the GDP deflator reflect

You find that your paycheck for the year is higher this year than last.Does that mean that your real income has increased? Explain carefully.

Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?

Table 10-5 A hypothetical country of Lahland produces only movies and popcorn.Quantities and prices of these goods for the last several years are shown below.The base year is 2009. Prices and Quantities -Refer to Table 10-5 What was this country's real GDP in 2010?

The government computes measures of income other than GDP because these other measures usually tell different stories about overall economic conditions.

How frequently is U.S.GDP reported? Is GDP adjusted for seasonality?

Table 10-4 The table below reports nominal and real GDP for the U.S.from 1929 to 1932. -Refer to Table 10-3.What was the growth rate of real GDP for 1931?

If in some year nominal GDP was $20 billion and the GDP deflator was 50,what was real GDP ?

National income is defined as

Changes in inventory are included in the investment component of GDP.

According to the circular-flow diagram GDP

Consumer goods that are produced,go into inventory,and are not sold during the current period are

In the United States in 2009,purchases of capital equipment,inventories,and structures represented approximately

Which of the following is included in the consumption component of GDP?

Typically in countries with lower levels of real GDP person,a smaller percentage of the population is literate.

Sheri,a U.S.citizen,works only in Germany.The value she adds to production in Germany is included

Tyler and Camille both live in Oklahoma.A new-car dealer in Oklahoma bought a new car from the manufacturer for $18,000 and sold it to Tyler for $22,000.Later that year,Tyler sold the car to Camille for $17,000.By how much did these transactions contribute to U.S.GDP for the year?

Which of the following is not a question that macroeconomists address?