Consider the following data. Assume that the economy produces only frozen fish. Calculate the growth rate of real GDP. \[\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Tons of Frozen } \\ \text { Fish Sold } \end{array} & \begin{array} { c } \text { Actual } \\ \text { Price } \end{array} \\ \hline \text { Last year } & 150 & \$ 1,500 \\ \hline \text { This year } & 153 & \$ 1,576 \\ \hline \end{array}\]

The answer of Consider the following data. Assume that the...

(Table: Peanut Butter and Jelly Economy) Use Table: Peanut Butter and Jelly Economy. From 2018 to 2019, real GDP _____ by _____. \[\begin{array} { | l | l | l | l | l | l | } \hline \text { Product } & \text { 2018 Output } & \begin{array} { l } \text { 2018 Prices } \\ \text { (base year) } \end{array} & \text { Product } & \text { 2019 Output } & \text { 2019 Prices } \\ \hline \text { Peanut butter } & \text { 200 units } & \text { \$1 per unit } & \text { Peanut butter } & 250 & \text { \$1.10 per unit } \\ \hline \text { Jelly } & 100 \text { units } & 2 \text { per unit } & \text { Jelly } & 100 & 2.50 \text { per unit } \\ \hline \end{array}\]

A) increased; 12.5%. B) increased; 12.5% C) decreased; 50%. D) decreased; 50% E) increased; 43.75%. F)increased; 43.75% G)decreased; 12.5%. H)decreased; 12.5% A) increased; 12.5%. B) increased; 12.5% C) decreased; 50%. D) decreased; 50% E) increased; 43.75%. F)increased; 43.75% G)decreased; 12.5%. H)decreased; 12.5%

(Table: Per Capita GDP) Use Table: Per Capita GDP. The growth rate of real GDP from 2016 to 2019 was: \[\begin{array} { | l | l | l | l | } \hline \text { Year } & \text { Nominal GDP } & \text { Price Level } & \text { Population } \\ \hline \mathbf { 2 0 1 6 } & \$ 3,000 & 100 & 5 \\ \hline \mathbf { 2 0 1 9 } & 8,000 & 200 & 10 \\ \hline \end{array}\]

A) 10% B) 10%. C) 20% D) 20%. E) 25% F)25%. G)33% H)33%. A) 10% B) 10%. C) 20% D) 20%. E) 25% F)25%. G)33% H)33%.

(Table: Pizza Economy III) Use Table: Pizza Economy III. Using 2018 as the base year, nominal GDP in 2018 was: \[\begin{array} { | l | l | l | l | l | } \hline & \begin{array} { l } \text { 2018 Units of } \\ \text { Output } \end{array} & \begin{array} { l } \text { 2018 Price per } \\ \text { Unit } \end{array} & \begin{array} { l } \text { 2019 Units of } \\ \text { Output } \end{array} & \begin{array} { l } \text { 2019 Price } \\ \text { per Unit } \end{array} \\ \hline \text { Gino's Pizza } & 4,000 & \$ 10 & 4,000 & \$ 8 \\ \hline \text { Bee's Spaghetti } & 3,000 & \$ 9 & 1,000 & \$ 6 \\ \hline \text { Claudia's Cookies } & 2,000 & \$ 6 & 1,000 & \$ 1 \\ \hline \text { Andre's Salad } & 5,000 & \$ 7 & 2,000 & \$ 4 \\ \hline \end{array}\]

A) $47,000 B) $47,000. C) $69,000 D) $69,000. E) $72,000 F)$72,000. G)$114,000 H)$114,000. A) $47,000 B) $47,000. C) $69,000 D) $69,000. E) $72,000 F)$72,000. G)$114,000 H)$114,000.

(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. The growth rate of nominal GDP from 2018 to 2019 was _____. \[\begin{array} { | l | l | l | l | l | } \hline & \text { 2018 Output } & \text { 2018 Prices } & \text { 2019 Output } & \text { 2019 Prices } \\ \hline \text { Lemonade } & 200 \text { glasses } & \text { \$1 per glass } & 220 \text { glasses } & \text { \$1 per glass } \\ \hline \text { Cookies } & 100 \text { cookies } & \text { \$2 per cookie } & 100 \text { cookies } & \text { \$2.25 per cookie } \\ \hline \end{array}\]

A) 5% B) 5%. C) 10%. D) 10% E) 11.25% F)11.25%. G)45% H)45%. A) 5% B) 5%. C) 10%. D) 10% E) 11.25% F)11.25%. G)45% H)45%.

(Table: Per Capita GDP) Use Table: Per Capita GDP. Per capita real GDP in 2016 was: \[\begin{array} { | l | l | l | l | } \hline \text { Year } & \text { Nominal GDP } & \text { Price Level } & \text { Population } \\ \hline \mathbf { 2 0 1 6 } & \$ 3,000 & 100 & 5 \\ \hline \mathbf { 2 0 1 9 } & 8,000 & 200 & 10 \\ \hline \end{array}\]

A) $600. B) $600 C) $400. D) $400 E) $300. F)$300 G)$30 H)$30. A) $600. B) $600 C) $400. D) $400 E) $300. F)$300 G)$30 H)$30.

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the real GDP for last year using this year as the base year? \[\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Tons of Frozen } \\ \text { Fish Sold } \end{array} & \begin{array} { c } \text { Actual } \\ \text { Price } \end{array} \\ \hline \text { Last year } & 100 & \$ 1,800 \\ \hline \text { This year } & 105 & \$ 1,850 \\ \hline \end{array}\]

A) $180,000 B) $191,625 C) $185,000 D) $194,250 A) $180,000 B) $191,625 C) $185,000 D) $194,250

(Table: Price and Output Data) Use Table: Price and Output Data. Between years 2 and 3, real GDP increased by: \[\begin{array} { | l | l | l | } \hline \text { Year } & \text { Output } & \text { Price per Unit } \\ \hline 1 & 2 & \$ 2 \\ \hline 2 & 3 & 4 \\ \hline 3 = \text { base period } & 4 & 5 \\ \hline 4 & 6 & 6 \\ \hline 5 & 7 & 9 \\ \hline \end{array}\]

A) 10% B) 10%. C) 20% D) 20%. E) 30% F)30%. G)33% H)33%. A) 10% B) 10%. C) 20% D) 20%. E) 30% F)30%. G)33% H)33%.

(Table: Price and Output Data) Use Table: Price and Output Data. The value of year 3's output in nominal dollars is: \[\begin{array} { | l | l | l | } \hline \text { Year } & \text { Output } & \text { Price per Unit } \\ \hline 1 & 2 & \$ 2 \\ \hline 2 & 3 & 4 \\ \hline 3 = \text { base period } & 4 & 5 \\ \hline 4 & 6 & 6 \\ \hline 5 & 7 & 9 \\ \hline \end{array}\]

A) $5 B) $5. C) $5.20. D) $5.20 E) $20. F)$20 G)$36 H)$36. A) $5 B) $5. C) $5.20. D) $5.20 E) $20. F)$20 G)$36 H)$36.

(Table: Price and Output Data) Use Table: Price and Output Data. Between years 4 and 5, real GDP: \[\begin{array} { | l | l | l | } \hline \text { Year } & \text { Output } & \text { Price per Unit } \\ \hline 1 & 2 & \$ 2 \\ \hline 2 & 3 & 4 \\ \hline 3 = \text { base period } & 4 & 5 \\ \hline 4 & 6 & 6 \\ \hline 5 & 7 & 9 \\ \hline \end{array}\]

A) decreased by 14% B) decreased by 14%. C) did not change. D) did not change E) increased by 3%. F)increased by 3% G)increased by 17% H)increased by 17%. A) decreased by 14% B) decreased by 14%. C) did not change. D) did not change E) increased by 3%. F)increased by 3% G)increased by 17% H)increased by 17%.

Exam 21: Sizing up the Economy Using Gdp

Which of the following is (are) included in investment? (i) military spending (ii) the purchase of an aircraft by a domestic airline (iii) the purchase of $45,000 worth of bonds (iv) the purchase of $32,000 worth of stock (v) social security payments (vi) the construction of a highway by the federal government

(Multiple Choice)

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Question 141

A person opts for the solitude of the wilderness and survives entirely by hunting, fishing, and growing food. What shortcoming of GDP measurement does this finding reflect?

(Multiple Choice)

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Question 142

Consider the following data. Assume that the economy produces only frozen fish. Calculate the growth rate of real GDP. Tons of Frozen Fish Sold Actual Price Last year 150 \ 1,500 This year 153 \ 1,576

(Essay)

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Question 143

(Table: Peanut Butter and Jelly Economy) Use Table: Peanut Butter and Jelly Economy. From 2018 to 2019, real GDP _ by _. Product 2018 Output 2018 Prices (base year) Product 2019 Output 2019 Prices Peanut butter 200 units \1 per unit Peanut butter 250 \1 .10 per unit Jelly 100 units 2 per unit Jelly 100 2.50 per unit

(Multiple Choice)

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Question 144

What are four limitations of GDP?

(Essay)

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Question 145

According to the rule of 70, if GDP per person is growing at a rate of roughly 7.9%, approximately how many years will it take for average income to double?

(Multiple Choice)

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Question 146

(Table: Per Capita GDP) Use Table: Per Capita GDP. The growth rate of real GDP from 2016 to 2019 was: Year Nominal GDP Price Level Population \ 3,000 100 5 8,000 200 10

(Multiple Choice)

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Question 147

(Table: Pizza Economy III) Use Table: Pizza Economy III. Using 2018 as the base year, nominal GDP in 2018 was: 2018 Units of Output 2018 Price per Unit 2019 Units of Output 2019 Price per Unit Gino's Pizza 4,000 \ 10 4,000 \ 8 Bee's Spaghetti 3,000 \ 9 1,000 \ 6 Claudia's Cookies 2,000 \ 6 1,000 \ 1 Andre's Salad 5,000 \ 7 2,000 \ 4

(Multiple Choice)

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Question 148

(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. The growth rate of nominal GDP from 2018 to 2019 was _____. 2018 Output 2018 Prices 2019 Output 2019 Prices Lemonade 200 glasses \1 per glass 220 glasses \1 per glass Cookies 100 cookies \2 per cookie 100 cookies \2 .25 per cookie

(Multiple Choice)

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Question 149

For each of these scenarios, calculate the growth rate of nominal GDP. (a) Inflation is 2.5%, and the growth rate of real GDP is 2.5%. (b) Inflation is 4.5%, and the growth rate of real GDP is 3.5%. (c) Inflation is 1%, and the growth rate of real GDP is -1%.

(Short Answer)

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Question 150

(Table: Per Capita GDP) Use Table: Per Capita GDP. Per capita real GDP in 2016 was: Year Nominal GDP Price Level Population \ 3,000 100 5 8,000 200 10

(Multiple Choice)

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Question 151

Consider the following data. Assume that the economy produces only shoes. (a) Calculate nominal GDP for each of the years. (b) Calculate the average price over the two years. (c) Calculate real GDP for each of the years. (d) Calculate the growth rate of real GDP. Pairs of Shoes Sold Actual Price Last year 400 \ 50 This year 420 \ 54

(Essay)

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Question 152

You just bought two used textbooks for $25 each. How much does GDP change because of your purchase?

(Multiple Choice)

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Question 153

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the real GDP for last year using this year as the base year? Tons of Frozen Fish Sold Actual Price Last year 100 \ 1,800 This year 105 \ 1,850

(Multiple Choice)

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Question 154

In 1933, if inflation in the United States was -2.8% and the growth rate of real GDP was -1.2%, what was the nominal GDP growth rate?

(Multiple Choice)

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Question 155

Transfer payments are payments that:

(Multiple Choice)

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Question 156

(Table: Price and Output Data) Use Table: Price and Output Data. Between years 2 and 3, real GDP increased by: Year Output Price per Unit 1 2 \ 2 2 3 4 3= base period 4 5 4 6 6 5 7 9

(Multiple Choice)

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Question 157

(Table: Price and Output Data) Use Table: Price and Output Data. The value of year 3's output in nominal dollars is: Year Output Price per Unit 1 2 \ 2 2 3 4 3= base period 4 5 4 6 6 5 7 9

(Multiple Choice)

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Question 158

Which of the following is an example of transfer payments?

(Multiple Choice)

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Question 159

(Table: Price and Output Data) Use Table: Price and Output Data. Between years 4 and 5, real GDP: Year Output Price per Unit 1 2 \ 2 2 3 4 3= base period 4 5 4 6 6 5 7 9

(Multiple Choice)

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Question 160

Exam 21: Sizing up the Economy Using Gdp

A person opts for the solitude of the wilderness and survives entirely by hunting, fishing, and growing food. What shortcoming of GDP measurement does this finding reflect?

Consider the following data. Assume that the economy produces only frozen fish. Calculate the growth rate of real GDP. Tons of Frozen Fish Sold Actual Price Last year 150 \ 1,500 This year 153 \ 1,576

What are four limitations of GDP?

According to the rule of 70, if GDP per person is growing at a rate of roughly 7.9%, approximately how many years will it take for average income to double?

(Table: Per Capita GDP) Use Table: Per Capita GDP. The growth rate of real GDP from 2016 to 2019 was: Year Nominal GDP Price Level Population \ 3,000 100 5 8,000 200 10

For each of these scenarios, calculate the growth rate of nominal GDP. (a) Inflation is 2.5%, and the growth rate of real GDP is 2.5%. (b) Inflation is 4.5%, and the growth rate of real GDP is 3.5%. (c) Inflation is 1%, and the growth rate of real GDP is -1%.

(Table: Per Capita GDP) Use Table: Per Capita GDP. Per capita real GDP in 2016 was: Year Nominal GDP Price Level Population \ 3,000 100 5 8,000 200 10

You just bought two used textbooks for $25 each. How much does GDP change because of your purchase?

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the real GDP for last year using this year as the base year? Tons of Frozen Fish Sold Actual Price Last year 100 \ 1,800 This year 105 \ 1,850

In 1933, if inflation in the United States was -2.8% and the growth rate of real GDP was -1.2%, what was the nominal GDP growth rate?

Transfer payments are payments that:

(Table: Price and Output Data) Use Table: Price and Output Data. Between years 2 and 3, real GDP increased by: Year Output Price per Unit 1 2 \ 2 2 3 4 3= base period 4 5 4 6 6 5 7 9

(Table: Price and Output Data) Use Table: Price and Output Data. The value of year 3's output in nominal dollars is: Year Output Price per Unit 1 2 \ 2 2 3 4 3= base period 4 5 4 6 6 5 7 9

Which of the following is an example of transfer payments?

(Table: Price and Output Data) Use Table: Price and Output Data. Between years 4 and 5, real GDP: Year Output Price per Unit 1 2 \ 2 2 3 4 3= base period 4 5 4 6 6 5 7 9

The Core Principles of Economics

Demand: Thinking Like a Buyer

Supply: Thinking Like a Seller

Equilibrium: Where Supply Meets Demand

Elasticity: Measuring Responsiveness

When Governments Intervene in Markets

Welfare and Efficiency

Gains From Trade

International Trade

Externalities and Public Goods

Labor Demand and Supply

Wages, Workers, and Management

Inequality, Social Insurance, and Redistribution

Market Structure and Market Power

Entry, Exit, and Long-Run Profitability

Business Strategy

Sophisticated Pricing Strategies

Game Theory and Strategic Choices

Decisions Involving Uncertainty

Decisions With Private Information

Economic Growth

Unemployment

Inflation and Money

Consumption and Saving

Investment

The Financial Sector

International Finance and the Exchange Rate

Business Cycles

IS-MP Analysis: Interest Rates and Output

Phillips Curve

The Fed Model: Linking Interest Rates, Output, and Inflation

Aggregate Demand and Aggregate Supply

Monetary Policy

Government Spending, Taxes, and Fiscal Policy

Appendix: Aggregate Expenditure and the Multiplier

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