Exam 10: Measuring a Nations Income

Table 10-5 A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2009.Prices and Quantities Year Price af Mavies Quantity af Mavies Price af Popcarn Quantity df Papentn 2008 \ 10.00 400 \ 5 800 2009 11.00 500 \ 4 900 2010 \ 12.00 600 \ 5 1000 2011 \ 12.00 600 \ 900 -Refer to Table 10-5 What was this country's GDP deflator in 2010?

If an economy's GDP rises, then it must be the case that the economy's

In the United States in 2009, government purchases of goods and services were

Table 10-4 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2008.Prices and Quantities Year Price af Cereal Quantity af Cereal Price af Millz Quantity df Mill 2008 \ 4.00 90 \ 1.50 150 2009 \ 4.00 100 \ 2.00 180 2010 \ 5.00 120 \ 2.50 200 2011 \ 6.00 150 \ 3.50 200 -Refer to Table 10-4. In 2010, this country's

You find that your paycheck for the year is higher this year than last. Does that mean that your real income has increased? Explain carefully.

Which of the following statements about GDP is correct?

Countries with low GDP per person tend to have

If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and investment is $800, then GDP is $5700.

In the actual economy, households

Recently, the U.S. national income accounts have switched to calling government purchases

If the value of an economy's imports exceeds the value of that economy's exports, then net exports is a negative number.

The residents of country A earn $500 million of income from abroad. Residents of other countries earn $200 million in country A. These earnings are accounted for in country A's

Table 10-1 The table below contains data for country A for the year 2010. Household purchases of durable goods \ 1293 Household purchases of nondurable goods \ 1717 Household purchases of services \ 301 Household purchases of new housing \ 704 Purchases of capital equipment \ 310 Inventory changes \ 374 Purchases of new structures \ 611 Depreciation \ 117 Salaries of government workers \ 1422 Government expenditures on public works \ 553 Transfer payments \ 777 Foreign purchases of domestically produced goods \ 88 Domestic purchases of foreign goods \ 120 -Refer to Table 10-1. What were country A's imports in 2010?

Table 10-3 The table below reports nominal and real GDP for the U.S. from 1929 to 1932. Year Nominal GDP Real GDP 1929 103.6 977 1930 91.2 892.8 1931 76.5 834.9 1932 58.7 725.8 -Refer to Table 10-3. If prices had remained constant between 1929 and 1930, GDP would have decreased

Table 10-3 The table below reports nominal and real GDP for the U.S. from 1929 to 1932. Year Nominal GDP Real GDP 1929 103.6 977 1930 91.2 892.8 1931 76.5 834.9 1932 58.7 725.8 -Refer to Table 10-3. What was the growth rate of real GDP for 1931?

Table 10-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2009.Prices and Quantities Year Price of Quantity af Price af Quantity af Waffles Waffles Pancalkes Pancalkes 2008 \ 2.00 100 \ 1.00 100 2009 \ 2.00 120 \ 2.00 150 2010 \ 2.00 150 \ 3.00 200 2011 \ 4.00 180 \ 3.00 220 -Refer to Table 10-6. This country's inflation rate from 2010 to 2011 was

Otherwise legal transactions that go unreported or unrecorded are called

A recession has traditionally been defined as a period during which

In 2009, government purchases was the largest component of U.S. GDP.

If total spending rises from one year to the next, then which of the following could not be true?