Exam 4: Macroeconomics: the Birds-Eye View of the Economy

Peg's Manicure Manor did 4,000 sets of nails in 2010 and 4,500 sets of nails in 2011. The price of a set of nails was $20 in 2010 and $22 in 2011. If 2010 is the base year, Peg's contribution to real GDP in 2011 was ______ and to nominal GDP in 2011 was _____.

Goods and services provided by state and local governments are:

A drawback of using market values to aggregate the quantities of goods and services produced in an economy is that:

The following table provides data for an economy in a certain year. Consumption expenditures 50 Imports 40 Government purchases of goods and services 20 Construction of new homes and apartments 30 Sales of existing homes and apartments 40 Exports 50 Government payments to retirees 10 Household purchases of durable goods 20 Beginning-of-year inventory 10 End-of-year inventory 20 Business fixed investment 30 Given the data in the table, compute the value of GDP.

The four categories of final users of GDP are:

Spending on durable goods, nondurable goods, and services is included in:

To compare the change in physical production (GDP) between 2000 and 2006, we should compare ______ GDP in 2000 with ______ GDP in 2006.

In which of the following situations would GDP not change?

An economy produces 1,000,000 computers valued at $2,000 each. Households purchase 200,000 computers, of which 100,000 are imported. Businesses purchase 300,000 domestically produced computers, the government purchases 300,000 domestically produced computers, and 100,000 domestically produced computers are sold abroad. The unsold computers at the end of the year are held in inventory by the computer manufacturers. What is the value of the investment component of GDP?

Which of the following transactions would be included in the GDP of the United States?