Exam 5: Introduction to Macroeconomics

Suppose the National Bureau of Economic Research announces that the economy has been in a recession for the past year. What effect might this announcement have on the economy?

In the formula for GDP (GDP = C + I + G + (X - M)), what does M represent?

Which of these is an example of gross private domestic investment?

Which transaction would NOT be included in the GDP calculation of a country?

Which of these would NOT be included in the GDP accounts?

Macroeconomics studies economic activity from the level of one individual or firm.

U.S. business cycles since 1950 have shown

The four main categories of spending included in the expenditure approach to calculating GDP are personal consumption, gross private domestic investment, government purchases, and net exports.

Social Security payments are included in the personal income category of national income.

The largest component of national income is

The countries in the southern tip of Africa (Botswana, Namibia, and South Africa) all have relatively high levels of income inequality. South Africa's population is much larger than the population of Botswana or Namibia. What measure would be most appropriate for comparing the standard of living across these three countries?

Sheila charges $100 to proof term papers for other college students. She does not declare this income on her tax return. Sheila is part of the informal economy.

Which one of these would be included in GDP calculations?

A criticism of the National Bureau of Economic Research's business cycle dating committee is that it

A simple circular flow diagram shows that the factors of production are

Which equation summarizes the expenditures approach to measuring GDP?

Which organization determines the beginning and end dates of a recession?

Which value is an example of a nonmarket transaction NOT included in the national income and product accounts?

Which is NOT a main use of the national income and product accounts?

If a wooden toy costs $15 to produce and is sold as a loss leader for $13, then the addition to GDP is $15.