Exam 6: Introduction to Macroeconomics and Gross Domestic Product

A student had the following expenditures last month: rent-$500,food expense-$200,cost of a used textbook from the bookstore-$50,cost of new shoes-$100,and cost of gas for the car-$100.Which of these items are included in GDP?

To evaluate the change in average living standards over time,it is best to use:

Consider the following data, which shows the quantities and prices of two goods produced in the economy, to answer the next three questions: -Which of the following is a service?

The business cycle measures:

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012. -Real GDP increases if:

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next six questions: Assume that the base year is 2012. -What was the GDP deflator in 2013?

Does the value of cleaning your house count toward the value of GDP?

Consider the following data, where GDP values are measured in millions of dollars, to answer the next seven questions: -What is the value of real GDP in 2010? Round to the nearest second decimal.

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012. -Real GDP is equal to:

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012. -Assuming the price level increased,real GDP is greater than nominal GDP if the current year is ________ the base year,and real GDP is less than nominal GDP if the current year is ________ the base year.

Company X sells paper to company Y for $100,000.Company Y uses the paper to make textbooks,selling them to consumers for $500,000.The total contribution to GDP is:

Explain why intermediate goods and used goods do not count in GDP.

Joe has a full-time construction job and also does odd jobs for people on the weekends.You have purchased the materials needed to construct a fence at your house and you pay Joe $500 to build the fence.Does the payment to Joe count toward the value of GDP?

The GDP deflator is a measure of:

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012. -What was the inflation rate between the two years?

Consider the following data, which shows the quantities and prices of two goods produced in the economy, to answer the next three questions: -The market value of cell phones is:

Nominal GDP increased from $15.62 trillion to $16.09 trillion,and the price level increased from 120.0 to 122.4.The growth rate of real GDP was approximately: (Round to the nearest second decimal.)

Draw a graph to illustrate the phases of the business cycle.Be sure to identify the length of a contraction and an expansion.Identify a peak and a trough.

Net exports can be defined as:

Nominal GDP is equal to: