Exam 12: Tracking and Explaining the Macroeconomy

Real GDP is decreasing and unemployment is increasing during:

The value of a meal John cooks for his family is excluded from GDP.

Suppose the GDP deflator is currently 115 while the equilibrium GDP deflator is 111. In this instance:

"The aggregate demand curve is negatively sloped because as the price level falls, goods become relatively less expensive. As a result, people buy more goods and services." Is this statement correct? Defend your answer.

A price index measures the price level for a given period relative to the base period.

Which of the following is a better indicator of an increase in the nation's productive capacity, gross investment or net investment? Defend your answer.

Which of the following is an example of double counting?

Use the data in the table below to calculate GDP.

Which of the following would be counted in the government purchases component of GDP?

Real GDP refers to:

An increase in aggregate demand would most likely be caused by:

Goods produced but not sold during the year are included in GDP.

Use the following diagram to answer the following questions. -Refer to GDP. In the diagram above, the letters A, B, C, and D, represent which phases of the business cycle?

Which of the following describe an intermediate good?

Aggregate demand shows the total amount of goods and services that will be sold at each price level.

As the price level falls the purchasing power of your currency increases. This is an example of:

Which of the following would be considered a personal consumption expenditure?

The aggregate demand curve is negatively sloped because of:

Use the following diagram to answer the following questions. -Refer to Real GDP. An increase in the price level is most likely to cause:

"Much of the fluctuation in GDP is caused by changes in consumption expenditures." Is this statement true or False? Defend your answer.