Exam 2: The Measurement and Structure of the National Economy

Sam's Semiconductors produces computer chips,which it sells for $10 million to Carl's Computer Company (CCC).CCC's computers are sold for a total of $16 million.What is the value added of CCC?

The measurement of GDP includes

The value added of a producer is the

The uses-of-saving identity says that an economy's private saving is used for

The Bigdrill company drills for oil,which it sells for $200 million to the Bigoil company to be made into gas.The Bigoil company's gas is sold for a total of $600 million.What is the total contribution to the country's GDP from companies Bigdrill and Bigoil?

Monica grows coconuts and catches fish.Last year she harvested 1500 coconuts and 600 fish.She values one fish as having a worth of three coconuts.She gave Rachel 300 coconuts and 100 fish for helping her to harvest coconuts and catch fish,all of which were consumed by Rachel.Monica set aside 200 fish to help with next year's harvest.In terms of fish,consumption would equal

Which of the following is included in U.S.GDP?

Marvin's Metal Company produces screws that it sells to Ford,which uses the screws as a component of its cars.In the national income accounts,the screws are classified as

Larry's Lathe-makers Limited produces lathes,which are purchased by furniture manufacturers all over the world.The standard lathe depreciates over a twenty-five-year period.In the national income accounts,the lathes are classified as

If the expected inflation rate was 2.5%,the expected real interest rate was 4.0%,and the actual inflation rate turned out to be 3.2%,then the real interest rate equals

You took out a loan one year ago at a nominal interest rate of 7.5%.The CPI stood at 173.2 at the time and you expected it to rise to 178.6 over the year.Today the CPI is actually 179.5.Calculate the expected real interest rate on the loan and the real interest rate on the loan.

If a local government collects taxes of $250,000,has $175,000 of government consumption expenditures,makes transfer payments of $75,000,and has no interest payments or investment,its budget would

The income-expenditure identity says that

Currently,the U.S.national income and product accounts (NIPA)use what type of price index to calculate real GDP?

Nations such as Egypt and Turkey may have wide differences between GNP and GDP because both the countries

If C = $250,I = $50,G = $60,NX = -$20,and NFP = $5,how much is GNP?

The uses-of-saving identity shows that if the government budget deficit rises,then one of the following must happen.

If the price index was 100 in 2000 and 120 in 2010,and nominal GDP was $360 billion in 2000 and $480 billion in 2010,then the value of 2010 GDP in terms of 2000 dollars would be

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

Suppose that private saving is $1590 billion,investment is $1945 billion,and the current account balance is -$489 billion.From the uses-of-saving identity,how much is government saving?