Exam 5: Measuring a Nations Income

A country reported a nominal GDP of $115 billion in 2015 and $125 billion in 2014 and reported a GDP deflator of 85 in 2015 and 100 in 2014. What happened to real output and prices from 2014 to 2015?

Which of the following is a macroeconomic issue?

In Canada, GDP is reported each quarter. How are these numbers computed?

Many things that society values, such as good health, high-quality education, enjoyable recreation opportunities, and desirable moral attributes of the population, are NOT measured as part of GDP. According to most economists, why is GDP a useful measure of society's well-being?

Which statistic is the best single measure of an economy's well-being?

Which statement best describes the evolution of the Canadian economy over the past decades?

-Refer to the Table 5-2. What is the disposable personal income for this economy?

Which example would be included in Canadian consumption?

Stephanie buys a designer dress produced by a Canadian-owned fashion shop in France. As a result, Canadian consumption increases. What happens as a result?

In an economy consisting of only households and firms, how can GDP be computed?

Which statement best represents a transfer payment?

Suppose an economy produces only cranberries and maple syrup. Last year, 50 units of cranberries are sold at $20 per unit, and 100 units of maple syrup are sold at $10 per unit. If the price of cranberries was $10 per unit and the price of maple syrup was $15 per unit in the base year, what can we conclude?

Which market is the model of supply and demand most appropriate for?

What is the goal of macroeconomics?

A farmer produces the same output in 2015 as in 2014. His input prices increase by 3 percent and so does his product price. Which inflation rate makes the farmer as well off in 2015 as in 2014?

With respect to GDP, how are transfer payments treated?

Which question is more likely to be studied by a macroeconomist than a microeconomist?

Which of the following is included in the investment component of Canadian GDP?

A Canadian oil company purchases new drilling equipment. What impact does this purchase have on investment and GDP?

Macroeconomic statistics include the inflation rate, the unemployment rate, GDP, and retail sales.