Exam 2: The Measurement and Structure of the Canadian Economy

Say nominal GDP was $603.9 billion in 2001 and $572.3 billion in 2000,while the GDP deflator was 121.1 in 2001 and 117.7 in 2000.What was the growth rate of real GDP between 2000 and 2001?

Because government services are not sold in markets

The A company collects bushels of wild berries,which it sells for $2 million to the B company to be made into jam.The B company's wild berry jam is sold for a total of $6 million.What is the total contribution to the country's GDP from companies A and B?

What is the difference between nominal and real economic variables? Why do economists tend to concentrate on changes in real magnitudes?

You are given information on the consumer price index (CPI),where the values given are those for December 31 of each year. Year CPI 1997 126.1 1998 133.8 1999 137.9 2000 141.9 2001 145.8 In which year was the inflation rate the highest?

Which of the following statements is true?

For 2002,the Kwakian economy had the following nominal quantities (in billions of dollars)and price indexes (1997 = 100)for each category of expenditure: Nominal Value Price Index Consumption 423.1 125.1 Fixed investment 112.0 111.0 Government purchases 165.8 123.2 Exports 180.4 100.9 Imports 186.7 97.2 Change in inventories -3.28 111.0 a.Calculate the real quantity for each category (to one decimal point). b.Calculate nominal and real GDP. c.Find the implicit price deflator (1997 = 100).

The income-expenditure identity says that

Countries A and B have the same GDP.In country A,people eat often in restaurants,but in country B people eat more often at home.Therefore

The consumer price index (CPI)is 311.1 for 2002 when using 1975 as the base year (1975 = 100).Now suppose we switch and use 2002 as the base year (2002 = 100).What is the CPI for 1975 with the new base year?

The A company collects bushels of wild berries,which it sells for $2 million to the B company to be made into jam.The B company's wild berry jam is sold for a total of $6 million.What is the value added of company B?

By Marks buys a one-year German government bond (called a bund)for $400.He receives principal and interest totalling $436 one year later.During the year the CPI rose from 150 to 162.The nominal interest rate on the bond was ________,and the real interest rate was ________.

If national savings in an economy is equal to $50 billion,exports are $10 billion,imports are $5 billion,and net factor payments from abroad is -$2 billion,total investment will be

In using the expenditure approach to GDP,consumption

The GDP deflator and the CPI

If the GDP deflator in 2017 is 110.5 and the base year is 2016,then the inflation rate in 2017 will be

What is the main conceptual difference between GDP and GNP? How different are GDP and GNP for Canada? For countries with many citizens who work abroad?

Private disposable income equals

Intermediate goods are

GDP deflator is