Exam 2: The Measurement and Structure of the Canadian Economy

If the price index was 100 in 1991 and 120 in 2001,and nominal GDP was $360 billion in 1991 and $480 billion in 2001,then the value of 2001 GDP in terms of 1991 dollars would be

Net national income is equal to

The country of Old Jersey produces milk and butter,and it has published the following macroeconomic data,where quantities are in gallons and prices are dollars per gallon: 2000 2001 Good Quantity Price Quantity Price Milk 500 \ 2 900 \ 3 Butter 2000 \ 1 3000 \ 2 Between 2000 and 2001,nominal GDP grew by

The government budget surplus equals

Underground activities in the economy are

In using the expenditure approach to GNP,consumption includes

Explain how changes in the inflation expectations affect the decisions on borrowing money.

The nominal interest rate is 750,today's price level is 150,and you expect the price level to be 156 one year from now.What is the expected inflation rate? What is the expected real interest rate?

Citizens of the country of Heehaw produce hay and provide entertainment services (banjo playing).In 1998 they produced $15 million worth of hay,with $11 million consumed domestically and the other $4 million sold to neighbouring countries.They provided $7 million worth of banjo-playing services,$5 million in Heehaw and $2 million in neighbouring countries.They purchased $6 million worth of soda pop from neighbouring countries.Calculate the magnitudes of GNP,GDP,net factor payments from abroad,net exports,and the current account balance.

Suppose that the national savings in an economy is $50 billion and total investment $60 billion.The country should have

The real interest rate

In 2001 national saving in the country of Polity was $85 billion,investment was $112 billion,and private saving was $114 billion.How much was the current account balance?

Mark 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,but he had thought the CPI would be at 159 by the end of the year.Mark had expected the real interest rate to be ________,but it actually turned out to be ________.

Canada's current account has recently been negative.This means that

The national income accounts

A fixed-weight price index

Pete the Pizza Man produced $87 thousand worth of pizzas in the past year.He paid $39 thousand to employees,paid $11 thousand for vegetables and other ingredients,and paid $5 thousand in taxes.He began the year with ingredient inventories valued at $1 thousand,and ended the year with inventories valued at $2 thousand.What was Pete's (and his employees')total contribution to GDP this year?

Private saving is defined as being equal to

Beautiful Boating purchases five new boats at $200 thousand each to rent to vacationing fishermen.The firm sells its old boats to the public for $500 thousand.The net increase in GDP of these transactions was

If real GDP falls by 1 percent,but the nominal GDP rises by 5 percent,then we must conclude that