Exam 2: Measuring the Macroeconomy

Which of the following is true about the consumer price index?

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Table 2.1 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 2012 $\quad$$\quad$$\quad$ 2013 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Quantity $\quad$ Price $\quad$ Quantity $\quad$ Price Apples 50 \ 0.40 75 \ 0.50 Huritos 80 1.50 100 1.60 Chewing Gum 60 1.25 70 1.50 Table 2.1 gives quantities and prices for each good produced in a simple economy in 2012 and 2013. -Refer to Figure 2.1GDP in 2013 is

Consumer purchases that are consumed at the time and place of purchase are categorized by the Statistics Canada as

Identify which of the following people would be considered either employed,unemployed,or not in the labour force: a. Alejandro just lost his job at an automobile assembly plant and is looking for work in another industry. b. Bonnie quit her job six months ago to take care of her newborn triplets. c. Cheyenne just received her bachelor's degree in accounting and is going to backpack through Europe for six months before seeking employment as an auditor. d. Danitra owns a talent agency which provides clowns for children's birthday parties. e. Edgar is a full-time student and is working 10 hours each week as a lab assistant at Faber College. f. Flavio was awarded a $10 million settlement from his former employer and has chosen to retire.

The profits from a Canadian-owned Burger King in France are included in the Canadian ________ and the French ________.

$\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 2013 is

National income accounting reveals that the value of total production in an economy

Pensions,wages,social support payments,tax brackets,and other dollar values are adjusted by the percentage equal to,or related to,the rate of inflation.Such adjusting is called

If the actual inflation rate is less than the expected inflation rate,the actual real interest rate will be ________ than the expected real interest rate.When this happens,________ will lose and ________ will gain.

Explain which of the following goods and services are included and which are not included in Canada's GDP: a. Jacinda buys termite spray at her local Home Depot. b. Jacinda uses the termite spray she purchased at her local Home Depot to treat her house for termites. c. Arturo hires a pest control company to treat his house for termites. d. Jeannine sells her 1969 Pontiac GTO to a local car museum. e. Simon purchases a new John Deere tractor to use on his farm. f. Ravi purchases two round-trip airline tickets between Toronto and Montreal.

Real GDP is the value of goods and services

The purchase by the U.S.government of a fighter jet produced in Canada is included in Canadian

Most economists believe there are four reasons the CPI overstates the true inflation rate.List and briefly explain these four reasons.

Gross domestic product is calculated as the sum of the

When exports equal imports,we say that country has a

$\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 2013 is

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

How would each of the following events likely change measured GDP? a. The sale and use of marijuana is legalized. b. There is an increase in sales of counterfeit video games. c. A foreign-owned furniture manufacturer opens a production facility in Toronto. d. More people choose to forgo their lawn maintenance services to take care of their own yards.