Exam 6: Introduction to Macroeconomics and Gross Domestic Product

Consider the following data, which shows the quantities and prices of two goods produced in the economy, to answer the next three questions: -To determine a value for GDP,you would:

A company produces a computer.They pay $100 for the keyboard and outer case,$200 for the internal hardware,and $100 for the software.They sell it to a consumer for $500.The contribution to GDP is:

The long run average growth rate of real GDP in the U.S.economy is about:

The four major expenditure categories of GDP are:

The difference between nominal GDP and real GDP is:

Consider the following figure to answer the next five questions: -In which year was the economy growing at the long-run average growth rate?

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,if real GDP is greater than nominal GDP for a given year,then:

For the next two questions, suppose a country has the following quarterly growth data for the last three years: -The country's long-run average growth rate is 3%.In how many of these quarters did GDP contract?

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 rate of inflation between the two years?

You bought stock in 2010 for $100 and you sold it in 2012 for $200.You used a broker to sell the stock for you,and he charged you $20.This transaction contributed ________ to GDP.

Consider the following data, which shows the quantities and prices of two goods produced in the economy, to answer the next three questions: -An accurate measure of GDP is derived by adding:

Macroeconomics is the study of:

Bob sells his car to Stan's Used Car Lot for $5,000.Stan's Used Car Lot sells the car to Bill for $5,500.This transaction contributes ________ to GDP.

A doctor receives $50,000 per month from her patients (and their insurance companies) as payment for her services.Each month she buys medical supplies for $10,000 and she pays a lab $15,000 for analyzing slides.The total contribution to GDP this month is:

Joe sells the house he has lived in for 10 years to the Smith family for $300,000.He receives $50,000 more than his original purchase price 10 years ago.Joe pays his real estate agent a 5% sales commission.This transaction will increase GDP by:

Explain why a country with a lower level of real GDP per capita might have a higher level of well-being in comparison to a country with a higher level of real GDP per capita.

A shortcoming of real GDP is:

When John buys new tires for his car it _______,and when Ford buys tires to put on new cars it ____________.

GDP is a good,but not the best,measure of:

Identify three reasons why GDP is not a perfect measure of a nation's well-being.