Exam 5: The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Mr.Clooney inherited a sum of $30,000 in 1990.If the price index was 100 for 1990 and 188 for 2014,the value of the money he inherited in 2014 dollars is ________.

The following table contains prices and quantities for the three goods produced in the country of Linfieldia. -Refer to the table above.Assuming that the base year basket of consumer goods to be 40 notebooks,1 thesis,and 200 doughnuts,what is the Consumer Price Index for 2014?

A drug dealer earned $85,000 during a year by selling illegal drugs.His income will ________.

Which of the following is a macroeconomic concept?

Frozen Cow Ice Cream Company buys sugar and milk to produce ice cream and energy drinks.At the end of a quarter,both its inventory of sugar and its inventory of energy drinks has increased,but their inventory of milk has decreased.Investment for the quarter will include ________.

Billy is a plumber.He earns $15 per hour.One morning,just before leaving for work,he found a leaky pipe in his kitchen.He spent 2 hours repairing the pipe. a)How would this affect the calculation of GDP? b)If Billy had spent 2 hours working for one of his clients,what would have been the effect of his activity on the calculation of GDP?

Suppose that instead of Greg not mowing his lawn,he pays his son $10.00 cash.By how much would GDP change?

The income per capita of a country for a particular year is determined by ________ during that year.

Donald Trump uses his foreign affairs account to pay a Scottish citizen $30,000 to caddy for him on a presidential golf trip in Scotland.As a result,________.

The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided. -Refer to the above table.Assuming that 2016 is the base year,what was the GDP deflator in 2016?

The following table contains data for Bahkan for the year 2017. -Refer to the above table.Personal income for Bahkan in 2017 is ________.

Which of the following is likely to happen if a German company opens a production unit in New York?

In a particular year,if the real GDP of Country Y is $400,000 and the nominal GDP of Country Y is $450,000,the GDP deflator is ________.

________ will lead to an increase in the GDP of a country,all other variables remaining constant.

Which of the following will lead to an increase in the GDP of a country,all other variables remaining unchanged?

Scenario: John and Sue are married and live in the United States. John is a Canadian citizen and stays home with their two children, Micah and Madison; his caretaking is valued at $20,000 per child. He also programs video games from home in the evenings for a Japanese-based online poker site for $50,000 per year. Sue works as a high-powered lawyer for Berkshire Hathaway at their London branch for the U.S. dollar equivalent of $1,00,000 per year. -Refer to the above scenario.How much does Sue contribute to U.S.GDP?

How does savings relate to investment using the national income accounting identity?

The following table contains data for Bahkan for the year 2017. -Refer to the above table.Disposable personal income for Bahkan in 2017 is ________.

What framework is used to measure the level of aggregate economic activity in a country?

The following table contains statistics for the country of Caddyville in 2013. -Refer to the table above.What will the labor force be in 2014 for Caddyville if 3,000 people turn 65,2,000 students graduate from college,4,000 children turn 18 and don't go to college,and the number of unemployed changes to 4,950? All else remains unchanged.