Question 1

Over the past half-century,government transfer payments have increased.As a result ________.

Accepted Answer

A) interest payments on government debt have declined 
B) government expenditures have become a larger portion of GDP 
C) the volatility of investment expenditures has declined 
D) net exports have been positive in most years 
E) none of the above 
A) interest payments on government debt have declined 
B) government expenditures have become a larger portion of GDP 
C) the volatility of investment expenditures has declined 
D) net exports have been positive in most years 
E) none of the above

Question 2

A few economies have the interesting characteristic that exports are more than 100 percent of the economy's GDP.How is this possible?

Accepted Answer

An economy's exports and imports can var

Question 3

An international comparison of eight major industrialized countries reveals the following about the components of GDP: ________.

Accepted Answer

A) the U.S.has one of the largest shares of GDP going to investment 
B) the U.S.has one of the smallest government share of GDP 
C) the U.S.runs one of the largest trade deficits 
D) all of the above 
E) none of the above 
A) the U.S.has one of the largest shares of GDP going to investment 
B) the U.S.has one of the smallest government share of GDP 
C) the U.S.runs one of the largest trade deficits 
D) all of the above 
E) none of the above

Question 4

An example of a nominal variable is ________.

Accepted Answer

A) income measured at current market prices 
B) expenditures in terms of the quantities of actual goods 
C) the chain weighted measure of GDP 
D) all of the above 
E) none of the above 
A) income measured at current market prices 
B) expenditures in terms of the quantities of actual goods 
C) the chain weighted measure of GDP 
D) all of the above 
E) none of the above

Question 5

Which is the largest category of income in the United States?

Accepted Answer

A) self-employment income 
B) corporate profits 
C) employee compensation 
D) net interest income 
E) none of the above 
A) self-employment income 
B) corporate profits 
C) employee compensation 
D) net interest income 
E) none of the above

Question 6

Real and Nominal GDP  
-Based on the table "Real and Nominal GDP," if year one is the base year,then the GDP deflator for year three is ________.

Accepted Answer

A) 165 
B) 139.8 
C) 85.8 
D) 133.6 
E) 114.6 
A) 165 
B) 139.8 
C) 85.8 
D) 133.6 
E) 114.6

Question 7

The most frequently reported price index is ________.

Accepted Answer

A) the consumer price index (CPI) 
B) the gross domestic product (GDP)deflator 
C) the personal consumption expenditure (PC
E) deflator 
D) chain weighted GDP 
E) the interest income deflator 
A) the consumer price index (CPI) 
B) the gross domestic product (GDP)deflator 
C) the personal consumption expenditure (PC
E) deflator 
D) chain weighted GDP 
E) the interest income deflator

Question 8

The unemployment rate is computed by ________.

Accepted Answer

A) dividing labor force by the adult population 
B) dividing the number of unemployed by the adult population 
C) multiplying the employment ratio by the adult population 
D) dividing the labor force by the number of unemployed 
E) none of the above 
A) dividing labor force by the adult population 
B) dividing the number of unemployed by the adult population 
C) multiplying the employment ratio by the adult population 
D) dividing the labor force by the number of unemployed 
E) none of the above

Question 9

Table 2.1 GDP and its components,2012  
-Assuming that the GDP breakdown shown in Table 2.1 is typical of a given year in the U.S.we can say that ________.

Accepted Answer

A) we spend twice as much on goods consumption as we do on services 
B) consumption of durable goods is twice that of nondurables 
C) government purchases is the largest main component of GDP 
D) all of the above 
E) none of the above 
A) we spend twice as much on goods consumption as we do on services 
B) consumption of durable goods is twice that of nondurables 
C) government purchases is the largest main component of GDP 
D) all of the above 
E) none of the above

Question 10

Table 2.1 GDP and its components,2012  
-Assuming that the GDP breakdown shown in Table 2.1 is typical of a given year in the U.S.we can say that ________.

Accepted Answer

A) we spend twice as much on services as we do on goods consumption 
B) consumption of nondurable goods is twice that of durables 
C) private investment is the smallest of the main domestic components of GDP 
D) all of the above 
E) none of the above 
A) we spend twice as much on services as we do on goods consumption 
B) consumption of nondurable goods is twice that of durables 
C) private investment is the smallest of the main domestic components of GDP 
D) all of the above 
E) none of the above

Question 11

Subtraction of ________ from Gross National Product yields Gross Domestic Product.

Accepted Answer

A) net factor income 
B) depreciation 
C) factor income to the rest of the world 
D) net government income 
E) none of the above 
A) net factor income 
B) depreciation 
C) factor income to the rest of the world 
D) net government income 
E) none of the above

Question 12

The household and establishment surveys sometimes differ on the labor market conditions.This is probably because ________.

Accepted Answer

A) the household survey counts a worker who holds two jobs twice and the establishment survey does not 
B) the household survey only counts employees of a company and the establishment survey also counts the self employed 
C) the household survey covers more workers than the establishment survey 
D) all of the above 
E) none of the above 
A) the household survey counts a worker who holds two jobs twice and the establishment survey does not 
B) the household survey only counts employees of a company and the establishment survey also counts the self employed 
C) the household survey covers more workers than the establishment survey 
D) all of the above 
E) none of the above

Question 13

The statistic most often used by economists to measure the value of economic activity is ________.

Accepted Answer

A) GDP 
B) the CPI 
C) labor-force participation rate 
D) the nominal interest rate 
E) the real interest rate 
A) GDP 
B) the CPI 
C) labor-force participation rate 
D) the nominal interest rate 
E) the real interest rate

Question 14

An international comparison of eight major industrialized countries reveals the following about the components of GDP: ________.

Accepted Answer

A) China has the highest share of investment among the eight countries 
B) India has the largest government share of output 
C) the U.S.is the largest consumer as a share of GDP 
D) all of the above 
E) none of the above 
A) China has the highest share of investment among the eight countries 
B) India has the largest government share of output 
C) the U.S.is the largest consumer as a share of GDP 
D) all of the above 
E) none of the above

Question 15

Figure 2.5 Unemployment in the adult civilian population,2013  
-According to Figure 2.5,the United States civilian labor force participation rate in June 2013 was ________.

Accepted Answer

A) 59% 
B) 43.8% 
C) 66.7% 
D) 64.0% 
E) none of the above 
A) 59% 
B) 43.8% 
C) 66.7% 
D) 64.0% 
E) none of the above

Question 16

The Fisher equation implies that an increase in the nominal rate of interest relative to the real rate indicates that ________.

Accepted Answer

A) inflation is expected to rise 
B) inflation is expected to decrease 
C) the real cost of borrowing has increased 
D) the real cost of borrowing has decreased 
E) none of the above 
A) inflation is expected to rise 
B) inflation is expected to decrease 
C) the real cost of borrowing has increased 
D) the real cost of borrowing has decreased 
E) none of the above

Question 17

The production approach to measuring GDP requires ________.

Accepted Answer

A) that the market value of a given good is a reasonable approximation of its economic value 
B) that all goods and services be added up before assigning a market value 
C) that no good or service rendered outside the market be included in GDP 
D) all of the above 
E) none of the above 
A) that the market value of a given good is a reasonable approximation of its economic value 
B) that all goods and services be added up before assigning a market value 
C) that no good or service rendered outside the market be included in GDP 
D) all of the above 
E) none of the above

Question 18

Capital goods are typically purchased to ________.They get included in GDP ________.

Accepted Answer

A) replace raw materials;in the year they are produced 
B) enable the investor to produce other goods and services;in each year they are utilized 
C) enable the investor to consume less in the current period;as they are used up in the stages of production 
D) enable the investor to produce other goods and services;in the year they are produced 
E) none of the above 
A) replace raw materials;in the year they are produced 
B) enable the investor to produce other goods and services;in each year they are utilized 
C) enable the investor to consume less in the current period;as they are used up in the stages of production 
D) enable the investor to produce other goods and services;in the year they are produced 
E) none of the above

Question 19

The Fisher equation implies ________.

Accepted Answer

A) the nominal interest rate equals the real rate of inflation plus expected inflation 
B) the real interest rate equals expected inflation 
C) expected inflation equals current inflation 
D) the rate of inflation equals the real minus the nominal rates of interest 
E) none of the above 
A) the nominal interest rate equals the real rate of inflation plus expected inflation 
B) the real interest rate equals expected inflation 
C) expected inflation equals current inflation 
D) the rate of inflation equals the real minus the nominal rates of interest 
E) none of the above

Question 20

In 1995,the Boskin commission identified which of the following problems with the computation of the CPI?

Accepted Answer

A) it does not account for the fact that consumers can substitute away from products as they get more expensive 
B) an increase in price could be the result of quality improvements rather than an increase in the cost of living 
C) it often does not reflect decreases in the cost of living that occur when new goods are introduced 
D) all of the above 
E) none of the above 
A) it does not account for the fact that consumers can substitute away from products as they get more expensive 
B) an increase in price could be the result of quality improvements rather than an increase in the cost of living 
C) it often does not reflect decreases in the cost of living that occur when new goods are introduced 
D) all of the above 
E) none of the above

Exam 2: Measuring Macroeconomic Data

Over the past half-century,government transfer payments have increased.As a result ________.

A few economies have the interesting characteristic that exports are more than 100 percent of the economy's GDP.How is this possible?

An international comparison of eight major industrialized countries reveals the following about the components of GDP: ________.

An example of a nominal variable is ________.

Which is the largest category of income in the United States?

Real and Nominal GDP -Based on the table "Real and Nominal GDP," if year one is the base year,then the GDP deflator for year three is ________.

The most frequently reported price index is ________.

The unemployment rate is computed by ________.

Table 2.1 GDP and its components,2012 -Assuming that the GDP breakdown shown in Table 2.1 is typical of a given year in the U.S.we can say that ________.

Table 2.1 GDP and its components,2012 -Assuming that the GDP breakdown shown in Table 2.1 is typical of a given year in the U.S.we can say that ________.

Subtraction of ________ from Gross National Product yields Gross Domestic Product.

The household and establishment surveys sometimes differ on the labor market conditions.This is probably because ________.

The statistic most often used by economists to measure the value of economic activity is ________.

An international comparison of eight major industrialized countries reveals the following about the components of GDP: ________.

Figure 2.5 Unemployment in the adult civilian population,2013 -According to Figure 2.5,the United States civilian labor force participation rate in June 2013 was ________.

The Fisher equation implies that an increase in the nominal rate of interest relative to the real rate indicates that ________.

The production approach to measuring GDP requires ________.

Capital goods are typically purchased to ________.They get included in GDP ________.

The Fisher equation implies ________.

In 1995,the Boskin commission identified which of the following problems with the computation of the CPI?

The Policy and Practice of Macroeconomics

Aggregate Production and Productivity

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

Aggregate Supply and the Phillips Curve

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

Filters

Capital goods are typically purchased to .They get included in GDP .