Question 1

The product approach to calculating GDP values government production at

Accepted Answer

A)  market prices. 
B)  its cost of production. 
C)  its estimated value to society. 
D)  the total amount of taxes it collects. 
E)  its intermediate costs. 
A)  market prices. 
B)  its cost of production. 
C)  its estimated value to society. 
D)  the total amount of taxes it collects. 
E)  its intermediate costs.

Question 2

The income-expenditure identity is best paraphrased as

Accepted Answer

A)  all spending generates income. 
B)  all profits are used for investment spending. 
C)  on average, consumers cannot save. 
D)  on average, government can spend no more than what it collects in income taxes. 
E)  all income is spent. 
A)  all spending generates income. 
B)  all profits are used for investment spending. 
C)  on average, consumers cannot save. 
D)  on average, government can spend no more than what it collects in income taxes. 
E)  all income is spent.

Question 3

Suppose that g1 represents the ratio of year 2 GDP to year 1 GDP,both valued at year 1 prices.Suppose that g2 represents the ratio of year 2 GDP to year 1 GDP,both valued at year 2 prices.The ratio of chain-weighted year 2 GDP to chain-weighted year 1 GDP equals

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 4

In recent years,which of the following has comprised less than 5% of GDP?

Accepted Answer

A)  imports 
B)  exports 
C)  net exports 
D)  investment 
E)  government spending 
A)  imports 
B)  exports 
C)  net exports 
D)  investment 
E)  government spending

Question 5

Recently,consumption has comprised approximately

Accepted Answer

A)  28% of GDP. 
B)  58% of GDP. 
C)  40% of GDP. 
D)  80% of GDP. 
E)  15% of GDP. 
A)  28% of GDP. 
B)  58% of GDP. 
C)  40% of GDP. 
D)  80% of GDP. 
E)  15% of GDP.

Question 6

Changes in the relative prices of goods causes problems measuring real GDP because

Accepted Answer

A)  consumers change their buying habits. 
B)  consumers buy less of the cheaper good. 
C)  firms produce more of the cheaper good. 
D)  price deflators only measure the price level. 
E)  they tend to be inaccurate. 
A)  consumers change their buying habits. 
B)  consumers buy less of the cheaper good. 
C)  firms produce more of the cheaper good. 
D)  price deflators only measure the price level. 
E)  they tend to be inaccurate.

Question 7

Investment spending is

Accepted Answer

A)  less volatile than consumption spending. 
B)  much more volatile than consumption spending. 
C)  equally as volatile as government spending. 
D)  equally volatile as GDP. 
E)  is a larger fraction of GDP than consumption is. 
A)  less volatile than consumption spending. 
B)  much more volatile than consumption spending. 
C)  equally as volatile as government spending. 
D)  equally volatile as GDP. 
E)  is a larger fraction of GDP than consumption is.

Question 8

The unemployment rate equals

Accepted Answer

A)   
B)   
C)   
D)   
E)   
A)   
B)   
C)   
D)   
E)

Question 9

The implicit GDP price deflator can be defined as

Accepted Answer

A)  (Nominal GDP + Real GDP) / 2. 
B)  (Nominal GDP / Real GDP) ? 100. 
C)  Nominal GDP - Real GDP. 
D)  (Real GDP / Nominal GDP) ? 100. 
E)  the consumer price index. 
A)  (Nominal GDP + Real GDP) / 2. 
B)  (Nominal GDP / Real GDP) ? 100. 
C)  Nominal GDP - Real GDP. 
D)  (Real GDP / Nominal GDP) ? 100. 
E)  the consumer price index.

Question 10

Intermediate goods are

Accepted Answer

A)  irrelevant in the overall economy. 
B)  purchased by consumers. 
C)  that are produced and used as inputs into the production process. 
D)  sold to foreigners. 
E)  are not a consumption good. 
A)  irrelevant in the overall economy. 
B)  purchased by consumers. 
C)  that are produced and used as inputs into the production process. 
D)  sold to foreigners. 
E)  are not a consumption good.

Question 11

Acme Steel Co.produces 1000 tons of steel.Steel sells for $30 per ton.Acme pays wages of $10,000.Acme buys $15,000 worth of coal,which is needed to produce the steel.Acme pays $2,000 in taxes.Acme's contribution to GDP is

Accepted Answer

A)  $15,000. 
B)  $20,000. 
C)  $30,000. 
D)  $45,000. 
E)  $60,000. 
A)  $15,000. 
B)  $20,000. 
C)  $30,000. 
D)  $45,000. 
E)  $60,000.

Question 12

The employment/population ratio equals

Accepted Answer

A)   
B)   
C)   
D)   
E)   
A)   
B)   
C)   
D)   
E)

Question 13

Discouraged workers are

Accepted Answer

A)  those who have given up looking for work, even though they would like to be employed. 
B)  those who quit working because they are dissatisfied with their jobs. 
C)  those who unmotivated workers who bring down a country's productivity. 
D)  would like to find a second job to supplement their income, but have not yet found one. 
E)  those that only work in the summer months. 
A)  those who have given up looking for work, even though they would like to be employed. 
B)  those who quit working because they are dissatisfied with their jobs. 
C)  those who unmotivated workers who bring down a country's productivity. 
D)  would like to find a second job to supplement their income, but have not yet found one. 
E)  those that only work in the summer months.

Question 14

In recent Canadian history,

Accepted Answer

A)  GNP is the only statistic that is calculated. 
B)  GNP has been much higher than GDP. 
C)  the difference between GNP and GDP has been very volatile. 
D)  there has been a significant difference between GNP and GDP. 
E)  there is little difference between GNP and GDP in Canada, but substantial differences in the U.S. 
A)  GNP is the only statistic that is calculated. 
B)  GNP has been much higher than GDP. 
C)  the difference between GNP and GDP has been very volatile. 
D)  there has been a significant difference between GNP and GDP. 
E)  there is little difference between GNP and GDP in Canada, but substantial differences in the U.S.

Question 15

The income approach to calculating GDP includes

Accepted Answer

A)  consumer spending. 
B)  exports of income earned. 
C)  net interest income. 
D)  government surpluses. 
E)  investment. 
A)  consumer spending. 
B)  exports of income earned. 
C)  net interest income. 
D)  government surpluses. 
E)  investment.

Question 16

To calculate the change in chain-weighted real GDP from one year to the next,we use

Accepted Answer

A)  first-year prices. 
B)  second-year prices. 
C)  the percentage change in prices from the first year to the second. 
D)  average prices over the two years. 
E)  base-year prices. 
A)  first-year prices. 
B)  second-year prices. 
C)  the percentage change in prices from the first year to the second. 
D)  average prices over the two years. 
E)  base-year prices.

Question 17

GDP may inaccurately measure the value of aggregate output because it may not properly account for

Accepted Answer

A)  production in the underground economy and the true value of government production. 
B)  the true value of government production and the proper value of purchases and sales of used goods. 
C)  the proper value of purchases and sales of used goods and depreciation of consumer durables. 
D)  the depreciation of consumer durables and production in the underground economy. 
E)  all services produced. 
A)  production in the underground economy and the true value of government production. 
B)  the true value of government production and the proper value of purchases and sales of used goods. 
C)  the proper value of purchases and sales of used goods and depreciation of consumer durables. 
D)  the depreciation of consumer durables and production in the underground economy. 
E)  all services produced.

Question 18

Private disposable income is equal to

Accepted Answer

A)  Y + TR + INT - T. 
B)  Y + NFP +TR + INT - T. 
C)  Y - TR - INT + T. 
D)  Y + CA - G. 
E)  Y - NFP - R - INT + T. 
A)  Y + TR + INT - T. 
B)  Y + NFP +TR + INT - T. 
C)  Y - TR - INT + T. 
D)  Y + CA - G. 
E)  Y - NFP - R - INT + T.

Question 19

Real GDP values current production at

Accepted Answer

A)  current year prices. 
B)  the best estimate of next year's prices. 
C)  the average of price levels over the entire sample period. 
D)  base year prices. 
E)  the purchase price not the asking prices of goods and services. 
A)  current year prices. 
B)  the best estimate of next year's prices. 
C)  the average of price levels over the entire sample period. 
D)  base year prices. 
E)  the purchase price not the asking prices of goods and services.

Question 20

Problems with interpreting the unemployment rate as a measure of labour market tightness include

Accepted Answer

A)  biases in the CPI and dissatisfied workers. 
B)  dissatisfied workers and discouraged workers. 
C)  discouraged workers and variations in how intensively the unemployed search for work. 
D)  variations in how intensively the unemployed search for work and biases in the CPI. 
E)  the rental vacancy rate. 
A)  biases in the CPI and dissatisfied workers. 
B)  dissatisfied workers and discouraged workers. 
C)  discouraged workers and variations in how intensively the unemployed search for work. 
D)  variations in how intensively the unemployed search for work and biases in the CPI. 
E)  the rental vacancy rate.

The product approach to calculating GDP values government production at

The income-expenditure identity is best paraphrased as

Suppose that g1 represents the ratio of year 2 GDP to year 1 GDP,both valued at year 1 prices.Suppose that g2 represents the ratio of year 2 GDP to year 1 GDP,both valued at year 2 prices.The ratio of chain-weighted year 2 GDP to chain-weighted year 1 GDP equals

In recent years,which of the following has comprised less than 5% of GDP?

Recently,consumption has comprised approximately

Changes in the relative prices of goods causes problems measuring real GDP because

Investment spending is

The unemployment rate equals

The implicit GDP price deflator can be defined as

Intermediate goods are

Acme Steel Co.produces 1000 tons of steel.Steel sells for $30 per ton.Acme pays wages of $10,000.Acme buys $15,000 worth of coal,which is needed to produce the steel.Acme pays $2,000 in taxes.Acme's contribution to GDP is

The employment/population ratio equals

Discouraged workers are

In recent Canadian history,

The income approach to calculating GDP includes

To calculate the change in chain-weighted real GDP from one year to the next,we use

GDP may inaccurately measure the value of aggregate output because it may not properly account for

Private disposable income is equal to

Real GDP values current production at

Problems with interpreting the unemployment rate as a measure of labour market tightness include

Introduction

Business Cycle Measurement

Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters

Exam 2: Measurement

The product approach to calculating GDP values government production at

The income-expenditure identity is best paraphrased as

Suppose that g1 represents the ratio of year 2 GDP to year 1 GDP,both valued at year 1 prices.Suppose that g2 represents the ratio of year 2 GDP to year 1 GDP,both valued at year 2 prices.The ratio of chain-weighted year 2 GDP to chain-weighted year 1 GDP equals

In recent years,which of the following has comprised less than 5% of GDP?

Recently,consumption has comprised approximately

Changes in the relative prices of goods causes problems measuring real GDP because

Investment spending is

The unemployment rate equals

The implicit GDP price deflator can be defined as

Intermediate goods are

Acme Steel Co.produces 1000 tons of steel.Steel sells for $30 per ton.Acme pays wages of $10,000.Acme buys $15,000 worth of coal,which is needed to produce the steel.Acme pays $2,000 in taxes.Acme's contribution to GDP is

The employment/population ratio equals

Discouraged workers are

In recent Canadian history,

The income approach to calculating GDP includes

To calculate the change in chain-weighted real GDP from one year to the next,we use

GDP may inaccurately measure the value of aggregate output because it may not properly account for

Private disposable income is equal to

Real GDP values current production at

Problems with interpreting the unemployment rate as a measure of labour market tightness include

Introduction

Business Cycle Measurement

Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters