Consider the following data that identifies real gross domestic product (GDP) in comparison to the long-run trend of real GDP to answer the next questions: $\begin{array} { l l l } \hline \text { Quarter } & \begin{array} { l } \text { Real GDP } \\ \text { (billions of dollars) } \end{array} & \begin{array} { l } \text { Long-Run Trend of Real } \\ \text { GDP (billions of dollars) } \end{array} \\ \hline 1 & 4,000 & 4,000 \\ 2 & 4,160 & 4,120 \\ 3 & 4,326 & 4,244 \\ 4 & 4,413 & 4,371 \\ 5 & 4,501 & 4,502 \\ 6 & 4,591 & 4,637 \\ 7 & 4,499 & 4,776 \\ 8 & 4,409 & 4,919 \\ 9 & 4,673 & 5,067 \\ 10 & 4,954 & 5,219 \\ 11 & 5,252 & 5,376 \\ 12 & 5,376 & 5,537 \\ \hline \end{array}$ -How many quarters did this economy spend in a recession?

A) 8 quarters B) 4 quarters C) 2 quarters D) 6 quarters E) 7 quarters A) 8 quarters B) 4 quarters C) 2 quarters D) 6 quarters E) 7 quarters C

Consider the following data that gives the quantity produced and unit price for three different goodsacross two different years to answer the next questions. Assume that the base year is 2012 \[\begin{array} { l l c l l } \hline \text { Good } & \text { 2012 Price } & \text { 2012 Quantity } & \text { 2013 Price } & \text { 2013 Quantity } \\ \hline \text { A } & \$ 2.00 & 500 & \$ 2.50 & 600 \\ \text { B } & \$ 4.00 & 1,000 & \$ 5.00 & 900 \\ \text { C } & \$ 2.00 & 200 & \$ 1.00 & 300 \\ \hline \end{array}\] -What was the real gross domestic product (GDP) in 2013?

A) $5,400 B) $6,300 C) $6,450 D) $1,700 E) $13,600 A) $5,400 B) $6,300 C) $6,450 D) $1,700 E) $13,600

Consider the following data that identifies real gross domestic product (GDP) in comparison to the long-run trend of real GDP to answer the next questions: $\begin{array} { l l l } \hline \text { Quarter } & \begin{array} { l } \text { Real GDP } \\ \text { (billions of dollars) } \end{array} & \begin{array} { l } \text { Long-Run Trend of Real } \\ \text { GDP (billions of dollars) } \end{array} \\ \hline 1 & 4,000 & 4,000 \\ 2 & 4,160 & 4,120 \\ 3 & 4,326 & 4,244 \\ 4 & 4,413 & 4,371 \\ 5 & 4,501 & 4,502 \\ 6 & 4,591 & 4,637 \\ 7 & 4,499 & 4,776 \\ 8 & 4,409 & 4,919 \\ 9 & 4,673 & 5,067 \\ 10 & 4,954 & 5,219 \\ 11 & 5,252 & 5,376 \\ 12 & 5,376 & 5,537 \\ \hline \end{array}$ -Between quarter 7 and quarter 8, real gross domestic product GDP) grew by what percentage?

A) -2 percent B) 3 percent C) 1 percent D) 2 percent E) 6 percent A) -2 percent B) 3 percent C) 1 percent D) 2 percent E) 6 percent

Consider the following data to answer the next questions: \[\begin{array} { l l r } \hline \text { Country } & \text { GDP } & \text { Population } \\ \hline \text { A } & \$ 32,000 & 1,500 \\ \text { B } & \$ 20,000 & 1,000 \\ \text { C } & \$ 10,000 & 500 \\ \text { D } & \$ 10,000 & 2,000 \\ \text { E } & \$ 8,000 & 800 \\ \hline \end{array}\] -Which country has the lowest average living standard?

A) A B) B C) C D) D E) E A) A B) B C) C D) D E) E

Consider the following data, where gross domestic product (GDP) values are measured in millions of dollars, to answer the next questions: \[\begin{array} { l l c l } \hline \text { Year } & \text { Nominal GDP } & \text { Real GDP } & \text { GDP Deflator } \\ \hline 2009 & & \$ 500 & 100 \\ 2010 & \$ 551.2 & & 106 \\ 2011 & \$ 600.6 & \$ 546 & \\ 2012 & & \$ 600.6 & 120 \\ \hline \end{array}\] -What is the value of the gross domestic product GDP) deflator in 2011? Round to the nearest decimal.

A) 54.6 B) 154.6 C) 110.0 D) 90.9 E) 112.0 A) 54.6 B) 154.6 C) 110.0 D) 90.9 E) 112.0

Exam 6: Introduction to Macroeconomics and Gross Domestic Product

Consider the following data that identifies real gross domestic product (GDP) in comparison to the long-run trend of real GDP to answer the next questions: Quarter Real GDP (billions of dollars) Long-Run Trend of Real GDP (billions of dollars) 1 4,000 4,000 2 4,160 4,120 3 4,326 4,244 4 4,413 4,371 5 4,501 4,502 6 4,591 4,637 7 4,499 4,776 8 4,409 4,919 9 4,673 5,067 10 4,954 5,219 11 5,252 5,376 12 5,376 5,537 -How many quarters did this economy spend in a recession?

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(Multiple Choice)

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Question 1

Correct Answer:

Verified

C

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

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Question 2

Correct Answer:

Verified

For starters, many services that provide no tangible goods still have tangible effects. A lawn-mowing service provides the customer with a nice-looking lawn. A doctor's service provides the patient with a healthier body. It would make no sense to leave these benefits out of economic calculations. But more fundamentally, in economics to say that something is of value simply means that people are willing to pay for it. This need not involve any tangible benefit. The value of a meal at a fancy restaurant, for instance, goes well beyond the nutritional value of the food. Counting the price of the meal toward GDP simply acknowledges its economic value. Finally, counting services toward GDP preserves the identity of national product with national income, since the restaurant, for instance, is definitely receiving income.

A doctor receives $50,000 per month from her patients and their insurance companies) as payment for her services. Each month she buys medical supplies for $10,000 and she pays a lab $15,000 for analyzing slides. The total contribution to gross domestic product GDP) this month is

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Question 3

Correct Answer:

Verified

A

Nominal gross domestic product GDP) increases if

(Multiple Choice)

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Question 4

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?

(Essay)

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Question 5

Consider the following data that gives the quantity produced and unit price for three different goodsacross two different years to answer the next questions. Assume that the base year is 2012 Good 2012 Price 2012 Quantity 2013 Price 2013 Quantity A \ 2.00 500 \ 2.50 600 B \ 4.00 1,000 \ 5.00 900 C \ 2.00 200 \ 1.00 300 -What was the real gross domestic product (GDP) in 2013?

(Multiple Choice)

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Question 6

Real gross domestic product GDP) is GDP adjusted for changes in

(Multiple Choice)

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Question 7

The sale of American-grown corn to China is included in the_____ category of gross domestic product (GDP).

(Multiple Choice)

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Question 8

Joe has a full-time construction job and also does odd jobs for people on the weekends. You have purchased the materials needed to construct a fence at your house and you pay Joe $500 to build the fence. Does the payment to Joe count toward the value of gross domestic product GDP)?

(Multiple Choice)

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Question 9

The difference between nominal gross domestic product GDP) and real GDP is

(Multiple Choice)

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Question 10

Consider the following data that identifies real gross domestic product (GDP) in comparison to the long-run trend of real GDP to answer the next questions: Quarter Real GDP (billions of dollars) Long-Run Trend of Real GDP (billions of dollars) 1 4,000 4,000 2 4,160 4,120 3 4,326 4,244 4 4,413 4,371 5 4,501 4,502 6 4,591 4,637 7 4,499 4,776 8 4,409 4,919 9 4,673 5,067 10 4,954 5,219 11 5,252 5,376 12 5,376 5,537 -Between quarter 7 and quarter 8, real gross domestic product GDP) grew by what percentage?

(Multiple Choice)

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Question 11

Nominal gross domestic product GDP) increased from $15.76 trillion to $16.39 trillion, and the price level increased from 112.6 to 114.8. Which of the following is true?

(Multiple Choice)

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Question 12

Consider the following data to answer the next 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 country has the lowest average living standard?

(Multiple Choice)

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Question 13

Explain how economic growth is related to change in gross domestic product GDP).

(Essay)

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Question 14

Nominal gross domestic product GDP) increased from $14.0 trillion to $14.7 trillion, and the price level increased from 120 to 126. Which of the following is true?

(Multiple Choice)

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Question 15

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

(Multiple Choice)

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Question 16

Explain why national output and national income are essentially the same thing. Why do exports to other nations not create a problem for this identity?

(Essay)

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Question 17

Goods that firms repackage with other goods for sale at a later stage are

(Multiple Choice)

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Question 18

Consider the following data, where gross domestic product (GDP) values are measured in millions of dollars, to answer the next 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 the gross domestic product GDP) deflator in 2011? Round to the nearest decimal.

(Multiple Choice)

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Question 19

Nominal gross domestic product GDP) increased from $15.62 trillion to $16.09 trillion, and the price level increased from 120.0 to 122.4. Rounding to the nearest first decimal, the rate of inflation was

(Multiple Choice)

4.7/5

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Question 20

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

A doctor receives $50,000 per month from her patients and their insurance companies) as payment for her services. Each month she buys medical supplies for $10,000 and she pays a lab $15,000 for analyzing slides. The total contribution to gross domestic product GDP) this month is

Nominal gross domestic product GDP) increases if

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?

Real gross domestic product GDP) is GDP adjusted for changes in

The sale of American-grown corn to China is included in the_____ category of gross domestic product (GDP).

Joe has a full-time construction job and also does odd jobs for people on the weekends. You have purchased the materials needed to construct a fence at your house and you pay Joe $500 to build the fence. Does the payment to Joe count toward the value of gross domestic product GDP)?

The difference between nominal gross domestic product GDP) and real GDP is

Nominal gross domestic product GDP) increased from $15.76 trillion to $16.39 trillion, and the price level increased from 112.6 to 114.8. Which of the following is true?

Consider the following data to answer the next 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 country has the lowest average living standard?

Explain how economic growth is related to change in gross domestic product GDP).

Nominal gross domestic product GDP) increased from $14.0 trillion to $14.7 trillion, and the price level increased from 120 to 126. Which of the following is true?

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

Explain why national output and national income are essentially the same thing. Why do exports to other nations not create a problem for this identity?

Goods that firms repackage with other goods for sale at a later stage are

Nominal gross domestic product GDP) increased from $15.62 trillion to $16.09 trillion, and the price level increased from 120.0 to 122.4. Rounding to the nearest first decimal, the rate of inflation was

Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand Y

Market Outcomes and Tax Incidence

Price Controls

Unemployment

The Price Level and Inflation

Savings, Interest Rates, and the Market for Loanable Funds

Financial Markets and Securities

Economic Growth and the Wealth of Nations

Growth Theory

The Aggregate Demandaggregate Supply Model

Recessions, Expansions, and the Debate Over How to Manage Them

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

Monetary Policy

International Trade

International Finance

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