Question 1

Business cycles

Accepted Answer

A)  are more volatile during a Republican administration. 
B)  are unpredictable due to political upheavals and global markets. 
C)  follow a pattern of trough, expansion, peak and recession. 
D)  are all identical in duration over the last century. 
A)  are more volatile during a Republican administration. 
B)  are unpredictable due to political upheavals and global markets. 
C)  follow a pattern of trough, expansion, peak and recession. 
D)  are all identical in duration over the last century. C

Question 2

Which of the following is not a phase or turning point of the business cycle?

Accepted Answer

A)  recession 
B)  expansion 
C)  shutdown 
D)  trough 
A)  recession 
B)  expansion 
C)  shutdown 
D)  trough C

Question 3

Which of the following statements about the comparison between GDP in China and in the United States is correct?

Accepted Answer

A)  Using the exchange rate to value China's GDP in dollars shows that China's GDP per person exceeds the GDP per person in the United States. 
B)  Using purchasing power parity prices to value China's GDP in dollars shows that China's GDP per person exceeds the GDP per person in the United States. 
C)  China's GDP per person is higher using purchasing power parity prices rather than the exchange rate when valuing China's GDP in dollars. 
D)  None of the above answers are correct because they are all false statements. 
A)  Using the exchange rate to value China's GDP in dollars shows that China's GDP per person exceeds the GDP per person in the United States. 
B)  Using purchasing power parity prices to value China's GDP in dollars shows that China's GDP per person exceeds the GDP per person in the United States. 
C)  China's GDP per person is higher using purchasing power parity prices rather than the exchange rate when valuing China's GDP in dollars. 
D)  None of the above answers are correct because they are all false statements. C

Question 4

To see how variables evolve over time we use

Accepted Answer

A)  a scatter graph. 
B)  an evolution plot. 
C)  a cross-section plot. 
D)  a time-series graph. 
A)  a scatter graph. 
B)  an evolution plot. 
C)  a cross-section plot. 
D)  a time-series graph.

Question 5

What are the categories of total expenditure?

Accepted Answer

There are four categories: Consumption e

Question 6

In years with inflation,nominal GDP increases ________ real GDP.

Accepted Answer

A)  faster than 
B)  slower than 
C)  at the same rate as 
D)  sometimes faster, sometimes slower, and sometimes at the same rate as 
A)  faster than 
B)  slower than 
C)  at the same rate as 
D)  sometimes faster, sometimes slower, and sometimes at the same rate as

Question 7

Compared to the other sources of spending,net exports is

Accepted Answer

A)  large and negative. 
B)  small and negative. 
C)  large and positive. 
D)  small and positive. 
A)  large and negative. 
B)  small and negative. 
C)  large and positive. 
D)  small and positive.

Question 8

At 2012 prices,the value of production in 2013 was 6 percentage points higher than in 2012.At 2013 prices,the value of production in 2013 was 4 percentage points higher than in 2012.Using the chain-weighted output index,real GDP is ________ in 2013 than in 2012.

Accepted Answer

A)  10 percent greater 
B)  5 percent greater 
C)  7.5 percent greater 
D)  4 percent smaller 
A)  10 percent greater 
B)  5 percent greater 
C)  7.5 percent greater 
D)  4 percent smaller

Question 9

Net exports of goods and services equal the

Accepted Answer

A)  exports of goods and services divided by the imports of goods and services. 
B)  exports of goods and services plus the imports of goods and services. 
C)  exports of goods and services minus the imports of goods and services. 
D)  imports of goods and services minus the exports of goods and services. 
A)  exports of goods and services divided by the imports of goods and services. 
B)  exports of goods and services plus the imports of goods and services. 
C)  exports of goods and services minus the imports of goods and services. 
D)  imports of goods and services minus the exports of goods and services.

Question 10

Using a graph,draw and label the phases and turning points of the business cycle.

Accepted Answer

@#IMG-DLM& The figur

Question 11

A business cycle is the pattern of short-run upward and downward movements in production and jobs.

Accepted Answer

A) True 
 B)False

Question 12

By itself,an increase in exports

Accepted Answer

A)  increases GDP. 
B)  decreases GDP. 
C)  means imports decrease by the same amount. 
D)  can either increase or decrease GDP, depending on whether the exports are durable or nondurable. 
A)  increases GDP. 
B)  decreases GDP. 
C)  means imports decrease by the same amount. 
D)  can either increase or decrease GDP, depending on whether the exports are durable or nondurable.

Question 13

The term "business cycle" most closely refers to the

Accepted Answer

A)  fluctuating profits of firms. 
B)  fiscal year. 
C)  accounting period used by firms. 
D)  alternating periods of expansions and recessions. 
A)  fluctuating profits of firms. 
B)  fiscal year. 
C)  accounting period used by firms. 
D)  alternating periods of expansions and recessions.

Question 14

List and compare the four components of the expenditure approach to calculating GDP.

Accepted Answer

The 4 parts can be summarized according

Question 15

GDP equals

Accepted Answer

A)  C + S + G + (X - M) 
B)  C + I + G + (X + M). 
C)  C + I + G + (X - M),. 
D)  C + S + G + (X - M).. 
A)  C + S + G + (X - M) 
B)  C + I + G + (X + M). 
C)  C + I + G + (X - M),. 
D)  C + S + G + (X - M)..

Question 16

4 News Based Questions
"As the credit crisis unfolded over the past year, one of the few certainties in the global economy seemed to be China's ability to plough on regardless of double-digit growth rates...The ...crisis has also focused ...on the need to update a growth model that...is still dependent on assembling goods for export without adding much value and on heavy industries that create pollution. Chinese companies have continued to find new foreign markets for their products...several other factors point to a slowing property market...production of steel, cement and air conditioners was down... Retail sales have risen by 23 per cent in each of the last two months".
Beijing's Burden, www.FT.com, by Geoff Dyer, Sept. 23, 2008
-According to the article,________ are expected to contribute ________ to China's real GDP in 2008.

Accepted Answer

A)  exports and consumption; positively 
B)  consumption and government spending; negatively 
C)  exports and investment; negatively 
D)  rental income and investment; negatively 
A)  exports and consumption; positively 
B)  consumption and government spending; negatively 
C)  exports and investment; negatively 
D)  rental income and investment; negatively

Question 17

Net investment equals

Accepted Answer

A)  capital stock minus depreciation. 
B)  gross investment minus depreciation. 
C)  the total quantity of plant, equipment and buildings. 
D)  gross investment/depreciation. 
A)  capital stock minus depreciation. 
B)  gross investment minus depreciation. 
C)  the total quantity of plant, equipment and buildings. 
D)  gross investment/depreciation.

Question 18

Is it possible for nominal GDP to increase while real GDP does not change?

Accepted Answer

Yes,it is possible for nominal GDP to in

Question 19

The series of ups and downs the economy tends to move in is called

Accepted Answer

A)  the business cycle. 
B)  a recession. 
C)  a depression. 
D)  economic growth. 
A)  the business cycle. 
B)  a recession. 
C)  a depression. 
D)  economic growth.

Question 20

According to the BEA,in the second quarter of 2012 business spending on equipment and software rose by 4.7 percent.Using the expenditure approach,this change increases

Accepted Answer

A)  gross private domestic investment. 
B)  government expenditure on goods and services. 
C)  net exports of goods and services. 
D)  personal consumption expenditures. 
A)  gross private domestic investment. 
B)  government expenditure on goods and services. 
C)  net exports of goods and services. 
D)  personal consumption expenditures.

Business cycles

Which of the following is not a phase or turning point of the business cycle?

Which of the following statements about the comparison between GDP in China and in the United States is correct?

To see how variables evolve over time we use

What are the categories of total expenditure?

In years with inflation,nominal GDP increases ________ real GDP.

Compared to the other sources of spending,net exports is

At 2012 prices,the value of production in 2013 was 6 percentage points higher than in 2012.At 2013 prices,the value of production in 2013 was 4 percentage points higher than in 2012.Using the chain-weighted output index,real GDP is ________ in 2013 than in 2012.

Net exports of goods and services equal the

Using a graph,draw and label the phases and turning points of the business cycle.

A business cycle is the pattern of short-run upward and downward movements in production and jobs.

By itself,an increase in exports

The term "business cycle" most closely refers to the

List and compare the four components of the expenditure approach to calculating GDP.

GDP equals

Net investment equals

Is it possible for nominal GDP to increase while real GDP does not change?

The series of ups and downs the economy tends to move in is called

According to the BEA,in the second quarter of 2012 business spending on equipment and software rose by 4.7 percent.Using the expenditure approach,this change increases

What Is Economics

The Economic Problem

Demand and Supply

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 4: Measuring GDP and Economic Growth

Business cycles

Which of the following is not a phase or turning point of the business cycle?

Which of the following statements about the comparison between GDP in China and in the United States is correct?

To see how variables evolve over time we use

What are the categories of total expenditure?

In years with inflation,nominal GDP increases ________ real GDP.

Compared to the other sources of spending,net exports is

At 2012 prices,the value of production in 2013 was 6 percentage points higher than in 2012.At 2013 prices,the value of production in 2013 was 4 percentage points higher than in 2012.Using the chain-weighted output index,real GDP is ________ in 2013 than in 2012.

Net exports of goods and services equal the

Using a graph,draw and label the phases and turning points of the business cycle.

A business cycle is the pattern of short-run upward and downward movements in production and jobs.

By itself,an increase in exports

The term "business cycle" most closely refers to the

List and compare the four components of the expenditure approach to calculating GDP.

GDP equals

Net investment equals

Is it possible for nominal GDP to increase while real GDP does not change?

The series of ups and downs the economy tends to move in is called

According to the BEA,in the second quarter of 2012 business spending on equipment and software rose by 4.7 percent.Using the expenditure approach,this change increases

What Is Economics

The Economic Problem

Demand and Supply

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters