Exam 6: Introduction to Macroeconomics and Gross Domestic Product

What does economics research have to say about the old adage that money can't buy happiness? Be specific.

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 gross domestic product GDP) deflator in 2012?

Good 2015 Price 2015 Quantity 2016 Price 2016 Quantity A \ 2 250 \ 3 200 B \ 3 300 \ 2 400 C \ 4 400 \ 5 500 -What was the growth rate of real gross domestic product (GDP) between the two years?

Consider the following data, which shows the quantities and prices of two goods produced in theeconomy, to answer the next questions: Quantity produced Price Cell phones 5 million \ 100/ cell phone Pizza 25 million \ 10/ pizza -Assuming these are the only two goods produced in the economy, what is the value of the gross domestic product GDP)?

Describe three different uses of gross domestic product GDP), or give three different reasons to explain why it might be useful to calculate GDP.

You bought a popular video game last year for $75 and sold it to a store this year for $20. The store sells the used game to a consumer for $40. When you sell your game to the store, how is this included in gross domestic product GDP)?

Farmer John produces oranges. He sells half of his inventory to people at his roadside stand for $20,000 and sells the other half to Tropicali for $15,000. Tropicali uses the oranges to make orange juice, which it sells to consumers for $25,000. The impact of these transactions on gross domestic product GDP) is

A computer company builds a new factory. This is included in the _____category of gross domestic product (GDP).

You bought stock in 2010 for $100 and you sold it in 2012 for $200. You used a broker to sell the stock for you, and he charged you $20. This transaction contributed_______ to gross domestic product GDP).

If gross domestic product GDP) is increasing, is the country necessarily producing a larger quantity of goods and services? Explain.

If gross domestic product GDP) is supposed to measure quantity of goods produced, why is GDP given as an amount of money rather than a quantity of goods produced?

The business cycle measures

The four major expenditure categories of gross domestic product GDP) are

The best measure of the average living standards of people in the country is the

You bought a popular video game last year for $75 and sold it to a store this year for $20. The store sells the used game to a consumer for $50. This adds______ to gross domestic product GDP) when the store sells the game to the consumer.

Company X sells sugar to company Y for $50,000. Company Y uses the sugar to make chocolate bars, selling them to consumers for $150,000. The total contribution to gross domestic product GDP) is

Good 2015 Price 2015 Quantity 2016 Price 2016 Quantity A \ 2 250 \ 3 200 B \ 3 300 \ 2 400 C \ 4 400 \ 5 500 -What was the inflation rate between the two years?

When you buy a new car built by Ford, it is included in the ______category of gross domestic product (GDP).

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

Between two given years, if real gross domestic product (GDP) and nominal GDP grow at the same rate, then