Exam 2: The Data of Macroeconomics

If the number employed increases while the number unemployed does not change, the unemployment rate:

When a firm sells a product out of inventory, investment expenditures and consumption expenditures .

An increase in the price of imported goods will show up in:

In the national income accounts, all of the following are classified as government purchases except:

When a firm sells a product out of inventory, GDP:

Disposable personal income:

According to the definition used by the U.S. Bureau of Labor Statistics, people are considered to be unemployed if they:

According to the usual seasonal pattern of the U.S. economy, GDP is highest in the quarter of the year that includes:

The employment statistics computed from the establishment survey do not include:

Explain which expenditure category of GDP changes and the direction of the change that results for each transaction described. a. A domestic business purchases a domestically produced computer to use in a business office. b. A domestic business produces a computer that is sold to a foreign company. c. The Federal Government purchases a domestically produced computer to use in a courthouse. d. A domestic household purchases a domestically produced computer to use in a home. e. A domestic household purchases a computer produced in a foreign country to use in a home.

Net national product equals GDP:

Explain why the value of GDP in 2009 would or would not change as a result of each transaction described below: a. In 2009. the Smith family purchases a new house that was built in 2009. b. In 2009, the Jones family purchases a house that was built in 2001. c. In 2009, a construction company purchases windows to put in the Smith family home that was built in 2009. d. In 2009, Mr. Jones paints all of the rooms of the Jones family house purchased in 2009. e. In 2009, Mr. Smith uses an online brokerage service to purchases shares of stock in a construction company.

If total investment (measured in billions of current dollars) equals $741, business fixed investment is $524, and residential fixed investment is $222, then inventory investment is:

A fixed-weight price index like the CPI the change in the cost of living because it take into account that people can substitute less expensive goods for ones that have become more expensive.

Assume that the market basket of goods and services purchased in 2004 by the average family in the United States costs $14,000 in 2004 prices, whereas the same basket costs $21,000 in 2009 prices. However, the basket of goods and services actually purchased by the average family in 2009 costs $20,000 in 2009 prices, whereas this same basket would have cost $15,000 in 2004 prices. Given these data, a Paasche index for 2009 using 2004 prices would be:

The new chain-weighted measures of real GDP are an improvement over traditional measures because the prices used to compute real GDP are:

The total income of everyone in the economy is exactly equal to the total:

Chain-weighted measures of real GDP make use of prices from:

A woman marries her butler. Before they were married, she paid him $60,000 per year. He continues to wait on her as before (but as a husband rather than as a wage earner). She earns $1,000,000 per year both before and after her marriage. If GDP were changed so that it truly measured the sum of all final economic activity, the marriage would:

Nominal GDP measures the value of goods and services in prices, while real GDP measures the value of goods and services in prices.