Question 1

If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is

Accepted Answer

A) 0.8. 
B) 12.5. 
C) 80. 
D) 125. 
E) 800. 
A) 0.8. 
B) 12.5. 
C) 80. 
D) 125. 
E) 800.

Question 2

Table 4.26  
-Refer to Table 4.26.Given the information above, calculate the GDP deflator for both 2016 and 2017.What does the value of the deflator in the year 2016 tell you about that year with respect to the base year? What happened to prices in 2017 as compared to 2016?

Accepted Answer

To calculate the GDP deflator for 2016 a

Question 3

Gross national income is defined as

Accepted Answer

A) the value of final goods and services produced within Canada. 
B) the value of final goods and services produced outside of Canada. 
C) the value of payments received by Canadians for their factors of production even if the production takes place outside of Canada. 
D) the value of final goods and services produced within Canada, by Canadian residents. 
E) the value of intermediate goods and services produced within Canada. 
A) the value of final goods and services produced within Canada. 
B) the value of final goods and services produced outside of Canada. 
C) the value of payments received by Canadians for their factors of production even if the production takes place outside of Canada. 
D) the value of final goods and services produced within Canada, by Canadian residents. 
E) the value of intermediate goods and services produced within Canada.

Question 4

Nominal GDP is another term for

Accepted Answer

A) inflation-adjusted GDP. 
B) real GDP. 
C) constant-dollar GDP. 
D) current-dollar GDP. 
E) chain-weighted GDP. 
A) inflation-adjusted GDP. 
B) real GDP. 
C) constant-dollar GDP. 
D) current-dollar GDP. 
E) chain-weighted GDP.

Question 5

If real GDP in 2017 (using 2007 prices)is lower than nominal GDP of 2016, then

Accepted Answer

A) prices in 2017 are lower than prices in 2016. 
B) nominal GDP in 2017 equals nominal GDP in 2016. 
C) prices in 2017 are higher than prices in 2016. 
D) real GDP in 2017 is larger than real GDP in 2016. 
E) the economy is going through a recession. 
A) prices in 2017 are lower than prices in 2016. 
B) nominal GDP in 2017 equals nominal GDP in 2016. 
C) prices in 2017 are higher than prices in 2016. 
D) real GDP in 2017 is larger than real GDP in 2016. 
E) the economy is going through a recession.

Question 6

Which of the following would increase disposable personal income?

Accepted Answer

A) a decrease in transfer payments received 
B) a decrease in taxes paid 
C) a decrease in personal income 
D) a decrease in interest payments 
E) All of the above would increase disposable income. 
A) a decrease in transfer payments received 
B) a decrease in taxes paid 
C) a decrease in personal income 
D) a decrease in interest payments 
E) All of the above would increase disposable income.

Question 7

Disposable household income equals household income

Accepted Answer

A) minus personal tax payments. 
B) plus government transfer payments. 
C) minus personal tax payments plus government transfer payments. 
D) minus government transfer payments plus personal tax payments. 
E) plus interest payments. 
A) minus personal tax payments. 
B) plus government transfer payments. 
C) minus personal tax payments plus government transfer payments. 
D) minus government transfer payments plus personal tax payments. 
E) plus interest payments.

Question 8

When Statistics Canada calculates real GDP using the average of prices in the current year and the year preceding it, and this average changes from year to year, this is called calculating GDP using

Accepted Answer

A) chain-weighted prices. 
B) fixed-weight prices. 
C) current-year prices. 
D) fixed base-year prices. 
E) international standard prices. 
A) chain-weighted prices. 
B) fixed-weight prices. 
C) current-year prices. 
D) fixed base-year prices. 
E) international standard prices.

Question 9

Which of the following would result in GDP for an economy equal to $10 trillion?

Accepted Answer

A) C = $6 trillion I = $2 trillion
G = $1.5 trillion
NX = -$2 trillion 
B) C = $7 trillion I = $2 trillion
G = $4 trillion
NX = $3 trillion 
C) C = $5 trillion I = $5 trillion
G = $2 trillion
NX = -$2 trillion 
D) C = $4 trillion I = $3 trillion
G = $2 trillion
NX = -$1 trillion 
E) C = $5 trillion I = $3 trillion
G = $2 trillion 
A) C = $6 trillion I = $2 trillion
G = $1.5 trillion
NX = -$2 trillion 
B) C = $7 trillion I = $2 trillion
G = $4 trillion
NX = $3 trillion 
C) C = $5 trillion I = $5 trillion
G = $2 trillion
NX = -$2 trillion 
D) C = $4 trillion I = $3 trillion
G = $2 trillion
NX = -$1 trillion 
E) C = $5 trillion I = $3 trillion
G = $2 trillion

Question 10

Table 4.21  
-Refer to Table 4.21.Given the information above, calculate the GDP deflator in 2017.

Accepted Answer

A) 114 
B) 105 
C) 100 
D) 95 
E) 87 
A) 114 
B) 105 
C) 100 
D) 95 
E) 87

Question 11

Table 4.13   Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts.
-Refer to Table 4.13.Real GDP for Vicuna for 2017 using 2014 as the base year equals

Accepted Answer

A) $4,620. 
B) $5,100. 
C) $5,650. 
D) $5,850. 
E) $6,250. 
A) $4,620. 
B) $5,100. 
C) $5,650. 
D) $5,850. 
E) $6,250.

Question 12

The largest component of spending in GDP is

Accepted Answer

A) household spending. 
B) investment spending. 
C) government spending. 
D) net export spending. 
E) wages. 
A) household spending. 
B) investment spending. 
C) government spending. 
D) net export spending. 
E) wages.

Question 13

Demographics and savings suggest that consumption's share of GDP is likely to ________ in the future.

Accepted Answer

A) rise 
B) remain highly stable 
C) increase and then level off 
D) drop 
A) rise 
B) remain highly stable 
C) increase and then level off 
D) drop

Question 14

The best measure of the income households actually have available to spend is

Accepted Answer

A) household income. 
B) disposable household income. 
C) national income. 
D) net national income. 
E) gross national income. 
A) household income. 
B) disposable household income. 
C) national income. 
D) net national income. 
E) gross national income.

Question 15

Table 4.20   A very simple economy produces three goods: cameras, legal services, and books.The quantities produced and their corresponding prices for 2007 and 2017 are shown in the table above.
-Refer to Table 4.20.What is real GDP in 2017, using 2007 as the base year?

Accepted Answer

A) $28,885 
B) $11,790 
C) $11,200 
D) $10,275 
E) $8,750 
A) $28,885 
B) $11,790 
C) $11,200 
D) $10,275 
E) $8,750

Question 16

Table 4.6  
-Refer to Table 4.6.Suppose that a simple economy produces only four goods and services: iPods, t-shirts, bottled water, and oranges.Calculate nominal GDP for this simple economy.

Accepted Answer

Nominal GDP equals (

Question 17

A final good is one that

Accepted Answer

A) is used in the production of another good. 
B) is a natural resource used to produce a good. 
C) is purchased as an input in the production process. 
D) is purchased by its final user. 
E) the output of any production process. 
A) is used in the production of another good. 
B) is a natural resource used to produce a good. 
C) is purchased as an input in the production process. 
D) is purchased by its final user. 
E) the output of any production process.

Question 18

The size of the underground economy as a percent of GDP is larger in Canada as compared to poorer countries such as Zimbabwe.

Accepted Answer

A) True 
 B)False

Question 19

The "underground economy" refers to

Accepted Answer

A) the buying and selling of goods that is concealed from the government. 
B) the production of goods and services used by the government for covert spy operations. 
C) the sector of the economy that earns profits that are higher than average. 
D) the formal sector of the economy in developing countries. 
E) those businesses in the economy that are likely to go out of business in the coming year. 
A) the buying and selling of goods that is concealed from the government. 
B) the production of goods and services used by the government for covert spy operations. 
C) the sector of the economy that earns profits that are higher than average. 
D) the formal sector of the economy in developing countries. 
E) those businesses in the economy that are likely to go out of business in the coming year.

Question 20

The nominal GDP of Canada in 2015 was approximately $1.99 trillion.This means that

Accepted Answer

A) the value of output in 2015 was around $1.99 trillion. 
B) total income in 2015 was around $1.99 trillion. 
C) total spending in 2015 was around $1.99 trillion. 
D) All of the above are true. 
A) the value of output in 2015 was around $1.99 trillion. 
B) total income in 2015 was around $1.99 trillion. 
C) total spending in 2015 was around $1.99 trillion. 
D) All of the above are true.

If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is

Table 4.26 -Refer to Table 4.26.Given the information above, calculate the GDP deflator for both 2016 and 2017.What does the value of the deflator in the year 2016 tell you about that year with respect to the base year? What happened to prices in 2017 as compared to 2016?

Gross national income is defined as

Nominal GDP is another term for

If real GDP in 2017 (using 2007 prices)is lower than nominal GDP of 2016, then

Which of the following would increase disposable personal income?

Disposable household income equals household income

When Statistics Canada calculates real GDP using the average of prices in the current year and the year preceding it, and this average changes from year to year, this is called calculating GDP using

Which of the following would result in GDP for an economy equal to $10 trillion?

Table 4.21 -Refer to Table 4.21.Given the information above, calculate the GDP deflator in 2017.

Table 4.13 Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts. -Refer to Table 4.13.Real GDP for Vicuna for 2017 using 2014 as the base year equals

The largest component of spending in GDP is

Demographics and savings suggest that consumption's share of GDP is likely to ________ in the future.

The best measure of the income households actually have available to spend is

Table 4.20 A very simple economy produces three goods: cameras, legal services, and books.The quantities produced and their corresponding prices for 2007 and 2017 are shown in the table above. -Refer to Table 4.20.What is real GDP in 2017, using 2007 as the base year?

Table 4.6 -Refer to Table 4.6.Suppose that a simple economy produces only four goods and services: iPods, t-shirts, bottled water, and oranges.Calculate nominal GDP for this simple economy.

A final good is one that

The size of the underground economy as a percent of GDP is larger in Canada as compared to poorer countries such as Zimbabwe.

The "underground economy" refers to

The nominal GDP of Canada in 2015 was approximately $1.99 trillion.This means that

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Supply and Demand

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Bank of Canada

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Bank of Canada Policy

Macroeconomics in an Open Economy

The International Financial System

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Exam 4: GDP: Measuring Total Production and Income

If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is

Table 4.26 -Refer to Table 4.26.Given the information above, calculate the GDP deflator for both 2016 and 2017.What does the value of the deflator in the year 2016 tell you about that year with respect to the base year? What happened to prices in 2017 as compared to 2016?

Gross national income is defined as

Nominal GDP is another term for

If real GDP in 2017 (using 2007 prices)is lower than nominal GDP of 2016, then

Which of the following would increase disposable personal income?

Disposable household income equals household income

When Statistics Canada calculates real GDP using the average of prices in the current year and the year preceding it, and this average changes from year to year, this is called calculating GDP using

Which of the following would result in GDP for an economy equal to $10 trillion?

Table 4.21 -Refer to Table 4.21.Given the information above, calculate the GDP deflator in 2017.

Table 4.13 Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts. -Refer to Table 4.13.Real GDP for Vicuna for 2017 using 2014 as the base year equals

The largest component of spending in GDP is

Demographics and savings suggest that consumption's share of GDP is likely to ________ in the future.

The best measure of the income households actually have available to spend is

Table 4.20 A very simple economy produces three goods: cameras, legal services, and books.The quantities produced and their corresponding prices for 2007 and 2017 are shown in the table above. -Refer to Table 4.20.What is real GDP in 2017, using 2007 as the base year?

Table 4.6 -Refer to Table 4.6.Suppose that a simple economy produces only four goods and services: iPods, t-shirts, bottled water, and oranges.Calculate nominal GDP for this simple economy.

A final good is one that

The size of the underground economy as a percent of GDP is larger in Canada as compared to poorer countries such as Zimbabwe.

The "underground economy" refers to

The nominal GDP of Canada in 2015 was approximately $1.99 trillion.This means that

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Supply and Demand

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Bank of Canada

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Bank of Canada Policy

Macroeconomics in an Open Economy

The International Financial System

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