Exam 12: Tracking and Explaining the Macroeconomy

Suppose the United States imports $750 billion of goods and services and exports $620 billion of goods and services. For the purposes of GDP, net exports are:

GDP has four parts: consumption, investment, government purchases, and net exports.

Suppose federal government purchases of goods and services is $475 billion, state government purchases of goods and services is $700 billion, and local government purchases of goods and services is $200 billion. What figure would GDP use for government purchases?

Use the following table to answer the following questions. -Refer to Exports. According to the information given, net investment is:

During the past three quarters real GDP has fallen by 4 percent and the unemployment rate has climbed from 5 to 7 percent. Economists predict that in the next quarter GDP will show a modest growth of 0.5 percent and unemployment may fall to 6.8 percent. The economy is most likely:

Aggregate demand shows:

The consumption of fixed capital refers to:

Suppose the GDP deflator is 125 and real GDP is $8,000 billion. What is nominal GDP?

If net investment is positive, an increase in the nation's capital stock occurs.

An increase in the price level will cause aggregate quantity supplied to increase only if output is less than the full employment level of output.

Real GDP will be smallest during:

A good that is purchased for resale or for use in producing other goods is:

Use the following diagram to answer the following questions. -Refer to GDP. In the diagram above, unemployment will likely be decreasing at point:

Suppose that net investment is zero. We know that:

A change in the price of resources will cause:

The vertical portion of the aggregate supply curve: