Exam 2: Measuring the Macroeconomy

________ is/are the main category of expenditure in Canada,amounting to over 55% of GDP.

________ payments,which are one of the largest components of a government's budget,are payments by the government to individuals for which the government does not receive a new good or service in return.

The labour force participation rate is

Which of the following would cause the unemployment rate as measured by Statistics Canada to understate the true degree of joblessness in the economy?

If we subtract depreciation from GNP,we are left with

All of the following new construction projects are examples of fixed investment spending,except

________ is national income earned by households plus transfer payments minus personal tax payments.

________ is/are a particularly serious problem as job skills deteriorate among people who have been out of work for an extended time and it is difficult for them to find new employment.

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Table 2.3 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 2007 $\quad$$\quad$$\quad$ 2010 $\quad$$\quad$$\quad$$\quad$ 2013 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Quantity Price $\quad$ Quantity Price $\quad$ Quantity Price Peaches 150 \ 0.20 170 \ 0.30 190 Tacos 75 0.80 80 1.00 100 1.20 Flashlights 3.00 40 3.50 50 Hamoricas 14.00 25 16.00 1 Table 2.3 gives quantities and prices for each good produced in a simple economy in 2007, 2010, and 2013. -Refer to Figure 2.3.Nominal GDP in 2010 is

Which of the following does not indicate a change in price levels?

Almost ________ of the CPI basket falls into the categories of housing,transportation,and food.

If the GDP deflator is less than 100 in 2013,then nominal GDP ________ real GDP in 2013.

The ________ refers to the production and sale of goods and services that are not recorded,either to avoid tax payments or because they are illegal.

Gross Domestic Product can be described as

Many provincial and local governments find themselves faced with increasing retirement expenditures for retired government employees.These increasing expenditures will ________ GDP because they are categorized as ________.

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Table 2.3 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 2007 $\quad$$\quad$$\quad$ 2010 $\quad$$\quad$$\quad$$\quad$ 2013 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Quantity Price $\quad$ Quantity Price $\quad$ Quantity Price Peaches 150 \ 0.20 170 \ 0.30 190 Tacos 75 0.80 80 1.00 100 1.20 Flashlights 3.00 40 3.50 50 Hamoricas 14.00 25 16.00 1 Table 2.3 gives quantities and prices for each good produced in a simple economy in 2007, 2010, and 2013. -Refer to Figure 2.3.Assume that 2010 is the base year.The GDP deflator for 2010 is

Which of the following goods is directly counted in GDP?

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Table 2.4 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 2011 $\quad$$\quad$$\quad$$\quad$ 2012 Noriiral GDP \ 555 million \ 610 rillion Real GDP \ 480 rillion \ 575 million -Refer to Figure 2.4.The GDP deflator for 2011 is

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Table 2.3 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 2007 $\quad$$\quad$$\quad$ 2010 $\quad$$\quad$$\quad$$\quad$ 2013 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Quantity Price $\quad$ Quantity Price $\quad$ Quantity Price Peaches 150 \ 0.20 170 \ 0.30 190 Tacos 75 0.80 80 1.00 100 1.20 Flashlights 3.00 40 3.50 50 Hamoricas 14.00 25 16.00 1 Table 2.3 gives quantities and prices for each good produced in a simple economy in 2007, 2010, and 2013. -Refer to Figure 2.3..Assume that 2010 is the base year.Real GDP in 2013 is

Which of the following could cause nominal GDP to increase and real GDP to decrease?