Question 1

Unlike the GDP deflator, the CPI includes the prices of:

Accepted Answer

A) goods purchased by firms. 
B) goods purchased by governments. 
C) exported goods. 
D) imported goods. 
A) goods purchased by firms. 
B) goods purchased by governments. 
C) exported goods. 
D) imported goods. D

Question 2

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

Accepted Answer

A) will increase. 
B) will decrease. 
C) will not change. 
D) may either increase or decrease. 
A) will increase. 
B) will decrease. 
C) will not change. 
D) may either increase or decrease. B

Question 3

The investment component of GDP includes all of the following except:

Accepted Answer

A) purchases of corporate stock. 
B) spending on new plants and equipment. 
C) purchases of new housing by households. 
D) changes in business inventories. 
A) purchases of corporate stock. 
B) spending on new plants and equipment. 
C) purchases of new housing by households. 
D) changes in business inventories. A

Question 4

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

Accepted Answer

A) payments made to Social Security recipients. 
B) services provided by police officers. 
C) purchases of military hardware. 
D) services provided by U.S. senators. 
A) payments made to Social Security recipients. 
B) services provided by police officers. 
C) purchases of military hardware. 
D) services provided by U.S. senators.

Question 5

The CPI is a:

Accepted Answer

A) Laspeyres price index. 
B) Paasche price index. 
C) Laspeyres quantity index. 
D) Paasche quantity index. 
A) Laspeyres price index. 
B) Paasche price index. 
C) Laspeyres quantity index. 
D) Paasche quantity index.

Question 6

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

Accepted Answer

A) an unchanging base year. 
B) a continuously changing base year. 
C) a base year that is changed approximately every 5 years. 
D) a base year that is changed approximately every 10 years. 
A) an unchanging base year. 
B) a continuously changing base year. 
C) a base year that is changed approximately every 5 years. 
D) a base year that is changed approximately every 10 years.

Question 7

The amount of capital in an economy is a and the amount of investment is a .

Accepted Answer

A) .flow; stock 
B) stock; flow 
C) final good; intermediate good 
D) intermediate good; final good 
A) .flow; stock 
B) stock; flow 
C) final good; intermediate good 
D) intermediate good; final good

Question 8

In 2010, the GDP of the United States totaled about:

Accepted Answer

A) $14.5 billion. 
B) $145 billion. 
C) $14.5 trillion. 
D) $145 trillion. 
A) $14.5 billion. 
B) $145 billion. 
C) $14.5 trillion. 
D) $145 trillion.

Question 9

An estimate of the number of unemployed workers in the economy can be obtained from:

Accepted Answer

A) both the household and establishment surveys. 
B) from the household survey, but not from the establishment survey. 
C) from the establishment survey, but not from the household survey. 
D) from neither the household nor the establishment surveys. 
A) both the household and establishment surveys. 
B) from the household survey, but not from the establishment survey. 
C) from the establishment survey, but not from the household survey. 
D) from neither the household nor the establishment surveys.

Question 10

A worker with two jobs is counted:

Accepted Answer

A) once in both the household and the establishment surveys. 
B) once in the household survey, but twice in the establishment survey. 
C) once in the establishment survey, but twice in the household survey. 
D) twice in both the household and the establishment surveys. 
A) once in both the household and the establishment surveys. 
B) once in the household survey, but twice in the establishment survey. 
C) once in the establishment survey, but twice in the household survey. 
D) twice in both the household and the establishment surveys.

Question 11

The economic statistic used to measure the level of prices is:

Accepted Answer

A) GDP. 
B) CPI. 
C) GNP. 
D) real GDP. 
A) GDP. 
B) CPI. 
C) GNP. 
D) real GDP.

Question 12

All of the following are a stock except:

Accepted Answer

A) a consumer's wealth. 
B) the government budget deficit. 
C) the number of unemployed people. 
D) the amount of capital in the economy. 
A) a consumer's wealth. 
B) the government budget deficit. 
C) the number of unemployed people. 
D) the amount of capital in the economy.

Question 13

The GDP deflator is equal to:

Accepted Answer

A) the ratio of nominal GDP to real GDP. 
B) the ratio of real GDP to nominal GDP. 
C) real GDP minus national GDP. 
D) nominal GDP minus real GDP. 
A) the ratio of nominal GDP to real GDP. 
B) the ratio of real GDP to nominal GDP. 
C) real GDP minus national GDP. 
D) nominal GDP minus real GDP.

Question 14

If the adult population equals 250 million, of which 145 million are employed and 5 million are unemployed, the labor force participation rate equals percent.

Accepted Answer

A) 50 
B) 58 
C) 60 
D) 67 
A) 50 
B) 58 
C) 60 
D) 67

Question 15

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

Accepted Answer

A) are out of a job, but not looking for work. 
B) retired from the labor force before age 65. 
C) do not have a job, but have looked for work in the past 4 weeks. 
D) are absent from work because of bad weather or illness. 
A) are out of a job, but not looking for work. 
B) retired from the labor force before age 65. 
C) do not have a job, but have looked for work in the past 4 weeks. 
D) are absent from work because of bad weather or illness.

Question 16

The panel of economists appointed by the Senate Finance Committee estimated that the CPI inflation by approximately percentage point(s) per year.

Accepted Answer

A) overestimates; 1 
B) overestimates; 10 
C) underestimates; 1 
D) underestimates; 10 
A) overestimates; 1 
B) overestimates; 10 
C) underestimates; 1 
D) underestimates; 10

Question 17

Which of the following is a flow variable?

Accepted Answer

A) wealth 
B) the number unemployed 
C) government debt 
D) income 
A) wealth 
B) the number unemployed 
C) government debt 
D) income

Question 18

In the national income accounts, consumption expenditures include all of the following except household purchases of:

Accepted Answer

A) durable goods. 
B) nondurable goods. 
C) new residential housing. 
D) services. 
A) durable goods. 
B) nondurable goods. 
C) new residential housing. 
D) services.

Question 19

Real GDP is a better measure of economic well-being than nominal GDP, because real GDP:

Accepted Answer

A) excludes the value of goods and services exported aboard. 
B) includes the value of government transfer payments. 
C) measures changes in the quantity of goods and services produced by holding prices constant. 
D) adjusts the value of goods and services produced for changes in the foreign exchange rate. 
A) excludes the value of goods and services exported aboard. 
B) includes the value of government transfer payments. 
C) measures changes in the quantity of goods and services produced by holding prices constant. 
D) adjusts the value of goods and services produced for changes in the foreign exchange rate.

Question 20

An increase in the price of goods bought by firms and the government will show up in:

Accepted Answer

A) the CPI but not in the GDP deflator. 
B) the GDP deflator but not in the CPI. 
C) both the CPI and the GDP deflator. 
D) neither the CPI nor the GDP deflator. 
A) the CPI but not in the GDP deflator. 
B) the GDP deflator but not in the CPI. 
C) both the CPI and the GDP deflator. 
D) neither the CPI nor the GDP deflator.

Unlike the GDP deflator, the CPI includes the prices of:

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

The investment component of GDP includes all of the following except:

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

The CPI is a:

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

The amount of capital in an economy is a and the amount of investment is a .

In 2010, the GDP of the United States totaled about:

An estimate of the number of unemployed workers in the economy can be obtained from:

A worker with two jobs is counted:

The economic statistic used to measure the level of prices is:

All of the following are a stock except:

The GDP deflator is equal to:

If the adult population equals 250 million, of which 145 million are employed and 5 million are unemployed, the labor force participation rate equals percent.

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

The panel of economists appointed by the Senate Finance Committee estimated that the CPI inflation by approximately percentage point(s) per year.

Which of the following is a flow variable?

In the national income accounts, consumption expenditures include all of the following except household purchases of:

Real GDP is a better measure of economic well-being than nominal GDP, because real GDP:

An increase in the price of goods bought by firms and the government will show up in:

The Science of Macroeconomics

National Income Where It Comes From and Where It Goes

Money and Inflation

The Open Economy

Unemployment

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Is-Lm Model

Aggregate Demand II: Applying the Is-Lm Model

The Open Economy Revisited: the Mundell-Fleming Model and the Exchange-Rate Regime

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Exam 2: The Data of Macroeconomics

Unlike the GDP deflator, the CPI includes the prices of:

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

The investment component of GDP includes all of the following except:

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

The CPI is a:

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

The amount of capital in an economy is a and the amount of investment is a .

In 2010, the GDP of the United States totaled about:

An estimate of the number of unemployed workers in the economy can be obtained from:

A worker with two jobs is counted:

The economic statistic used to measure the level of prices is:

All of the following are a stock except:

The GDP deflator is equal to:

If the adult population equals 250 million, of which 145 million are employed and 5 million are unemployed, the labor force participation rate equals percent.

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

The panel of economists appointed by the Senate Finance Committee estimated that the CPI inflation by approximately percentage point(s) per year.

Which of the following is a flow variable?

In the national income accounts, consumption expenditures include all of the following except household purchases of:

Real GDP is a better measure of economic well-being than nominal GDP, because real GDP:

An increase in the price of goods bought by firms and the government will show up in:

The Science of Macroeconomics

National Income Where It Comes From and Where It Goes

Money and Inflation

The Open Economy

Unemployment

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Is-Lm Model

Aggregate Demand II: Applying the Is-Lm Model

The Open Economy Revisited: the Mundell-Fleming Model and the Exchange-Rate Regime

Filters