Question 1

If the percent change in the price level is __________ than the percent change in __________,__________.

Accepted Answer

A) smaller;nominal GDP;real GDP shrinks 
B) greater;nominal GDP;real GDP shrinks 
C) greater;real GDP;nominal GDP shrinks 
D) greater;real GDP;nominal GDP stays the same 
E) Not enough information is given. 
A) smaller;nominal GDP;real GDP shrinks 
B) greater;nominal GDP;real GDP shrinks 
C) greater;real GDP;nominal GDP shrinks 
D) greater;real GDP;nominal GDP stays the same 
E) Not enough information is given.

Question 2

-Consider Table 2.2,National Income Accounts for 2005 and 2006.From this data,total GDP in 2005 was:

Accepted Answer

A) $10,780. 
B) $24,884. 
C) $14,073. 
D) $12,385. 
E) Not enough information is given. 
A) $10,780. 
B) $24,884. 
C) $14,073. 
D) $12,385. 
E) Not enough information is given.

Question 3

When calculating the real GDP using the Paasche index,we use the final period's prices.

Accepted Answer

A) True 
 B)False

Question 4

If the percent change in prices is greater than the percent change in the nominal GDP,the real GDP shrinks.

Accepted Answer

A) True 
 B)False

Question 5

If the percent change in prices is greater than the percent change in the nominal GDP,the real GDP rises.

Accepted Answer

A) True 
 B)False

Question 6

To get a more accurate view of the size of countries' economies,we first need to convert each country's GDP to the dollar using __________ and then adjust for __________.

Accepted Answer

A) the interest rate;the exchange rate 
B) the exchange rate;price level differences 
C) price level differences;the interest rate 
D) the exchange rate;fiscal policy 
E) fiscal policy;the exchange rate 
A) the interest rate;the exchange rate 
B) the exchange rate;price level differences 
C) price level differences;the interest rate 
D) the exchange rate;fiscal policy 
E) fiscal policy;the exchange rate

Question 7

According to the income approach to GDP,the largest portion of GDP is compensation to employees.

Accepted Answer

A) True 
 B)False

Question 8

If NGDP is nominal GDP and RGDP is real GDP,which of the following can be used to calculate inflation?

Accepted Answer

A) percent change in NGDP + percent change in RGDP 
B) percent change in NGDP - percent change in RGDP 
C) percent change in NGDP $\times$percent change in RGDP 
D) percent change in RGDP + percent change in NGDP 
E) percent change in RGDP - percent change in NGDP 
A) percent change in NGDP + percent change in RGDP 
B) percent change in NGDP - percent change in RGDP 
C) percent change in NGDP $\times$percent change in RGDP 
D) percent change in RGDP + percent change in NGDP 
E) percent change in RGDP - percent change in NGDP

Question 9

A lesson from microeconomics is that under perfect competition,where firms charge prices equal to marginal cost,__________ are zero.

Accepted Answer

A) revenues 
B) economic profits 
C) normal profits 
D) variable costs 
E) wages 
A) revenues 
B) economic profits 
C) normal profits 
D) variable costs 
E) wages

Question 10

In 2005,household expenditures accounted for about __________ of total GDP.

Accepted Answer

A) 19 percent 
B) 40 percent 
C) 16 percent 
D) 70 percent 
E) 11 percent 
A) 19 percent 
B) 40 percent 
C) 16 percent 
D) 70 percent 
E) 11 percent

Question 11

Which of the following are not included in the expenditure approach to National Income Accounting?

Accepted Answer

A) transfer payments 
B) taxes 
C) Social Security 
D) changes in the stock exchange 
E) all of the above 
A) transfer payments 
B) taxes 
C) Social Security 
D) changes in the stock exchange 
E) all of the above

Question 12

In 2005,government expenditures accounted for about __________ of total GDP.

Accepted Answer

A) 11 percent 
B) 40 percent 
C) 16 percent 
D) 70 percent 
E) 19 percent 
A) 11 percent 
B) 40 percent 
C) 16 percent 
D) 70 percent 
E) 19 percent

Question 13

According to the expenditure approach to GDP,household expenditures include purchases of residential housing.

Accepted Answer

A) True 
 B)False

Question 14

Nominal gross national product is defined as:

Accepted Answer

A) the value of all goods and services produced by an economy's citizens,regardless of where they live,over a period of time,at current prices. 
B) the value of all goods and services produced by an economy,within its borders over a period of time,at current prices. 
C) the value of all goods produced by an economy,within its borders,over a period of time,at current prices. 
D) the value of all goods and services produced by an economy,within its borders,over a period of time,at base-year prices. 
E) the value of all goods produced by an economy,within its borders,over a period of time,at base-year prices. 
A) the value of all goods and services produced by an economy's citizens,regardless of where they live,over a period of time,at current prices. 
B) the value of all goods and services produced by an economy,within its borders over a period of time,at current prices. 
C) the value of all goods produced by an economy,within its borders,over a period of time,at current prices. 
D) the value of all goods and services produced by an economy,within its borders,over a period of time,at base-year prices. 
E) the value of all goods produced by an economy,within its borders,over a period of time,at base-year prices.

Question 15

Since about 1970,__________ income share of GDP has been __________.

Accepted Answer

A) labor's;rising 
B) labor's;falling 
C) profits';falling 
D) indirect business taxes';rising 
E) the health sector's;falling 
A) labor's;rising 
B) labor's;falling 
C) profits';falling 
D) indirect business taxes';rising 
E) the health sector's;falling

Question 16

The chain-weighted measure of real GDP uses prices from:

Accepted Answer

A) a constant base year. 
B) a constantly changing base year. 
C) a base year that changes every five years. 
D) a base year that changes every ten years. 
E) none of the above 
A) a constant base year. 
B) a constantly changing base year. 
C) a base year that changes every five years. 
D) a base year that changes every ten years. 
E) none of the above

Question 17

A lesson from microeconomics is that unless there is some market power where firms charge prices above marginal cost,__________ are zero.

Accepted Answer

A) costs 
B) revenues 
C) normal profits 
D) economic profits 
E) variable costs 
A) costs 
B) revenues 
C) normal profits 
D) economic profits 
E) variable costs

Question 18

The largest GDP expenditure share historically has been government expenditure.

Accepted Answer

A) True 
 B)False

Question 19

If we want to calculate the Mexican real GDP in U.S.dollars but adjusted for prices,we use the following:

Accepted Answer

A)    
B)    
C)    
D)    
E) none of the above 
A)    
B)    
C)    
D)    
E) none of the above

Question 20

If we calculate the real GDP using the initial period's prices,we are using a __________ index.If,instead,we use the final period's prices,we are using a __________ index.

Accepted Answer

A) Paasche;chain-weighted 
B) Laspeyres;chain-weighted 
C) Laspeyres;Paasche 
D) Paasche;Laspeyres 
E) chain-weighted;Paasche 
A) Paasche;chain-weighted 
B) Laspeyres;chain-weighted 
C) Laspeyres;Paasche 
D) Paasche;Laspeyres 
E) chain-weighted;Paasche

If the percent change in the price level is than the percent change in ,__.

-Consider Table 2.2,National Income Accounts for 2005 and 2006.From this data,total GDP in 2005 was:

When calculating the real GDP using the Paasche index,we use the final period's prices.

If the percent change in prices is greater than the percent change in the nominal GDP,the real GDP shrinks.

If the percent change in prices is greater than the percent change in the nominal GDP,the real GDP rises.

To get a more accurate view of the size of countries' economies,we first need to convert each country's GDP to the dollar using and then adjust for .

According to the income approach to GDP,the largest portion of GDP is compensation to employees.

If NGDP is nominal GDP and RGDP is real GDP,which of the following can be used to calculate inflation?

A lesson from microeconomics is that under perfect competition,where firms charge prices equal to marginal cost,__________ are zero.

In 2005,household expenditures accounted for about __________ of total GDP.

Which of the following are not included in the expenditure approach to National Income Accounting?

In 2005,government expenditures accounted for about __________ of total GDP.

According to the expenditure approach to GDP,household expenditures include purchases of residential housing.

Nominal gross national product is defined as:

Since about 1970, income share of GDP has been .

The chain-weighted measure of real GDP uses prices from:

A lesson from microeconomics is that unless there is some market power where firms charge prices above marginal cost,__________ are zero.

The largest GDP expenditure share historically has been government expenditure.

If we want to calculate the Mexican real GDP in U.S.dollars but adjusted for prices,we use the following:

If we calculate the real GDP using the initial period's prices,we are using a index.If,instead,we use the final period's prices,we are using a index.

Introduction to Macroeconomics

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

Exam 2: Measuring the Macroeconomy

If the percent change in the price level is __________ than the percent change in __________,__________.

-Consider Table 2.2,National Income Accounts for 2005 and 2006.From this data,total GDP in 2005 was:

When calculating the real GDP using the Paasche index,we use the final period's prices.

If the percent change in prices is greater than the percent change in the nominal GDP,the real GDP shrinks.

If the percent change in prices is greater than the percent change in the nominal GDP,the real GDP rises.

To get a more accurate view of the size of countries' economies,we first need to convert each country's GDP to the dollar using __________ and then adjust for __________.

According to the income approach to GDP,the largest portion of GDP is compensation to employees.

If NGDP is nominal GDP and RGDP is real GDP,which of the following can be used to calculate inflation?

A lesson from microeconomics is that under perfect competition,where firms charge prices equal to marginal cost,__________ are zero.

In 2005,household expenditures accounted for about __________ of total GDP.

Which of the following are not included in the expenditure approach to National Income Accounting?

In 2005,government expenditures accounted for about __________ of total GDP.

According to the expenditure approach to GDP,household expenditures include purchases of residential housing.

Nominal gross national product is defined as:

Since about 1970,__________ income share of GDP has been __________.

The chain-weighted measure of real GDP uses prices from:

A lesson from microeconomics is that unless there is some market power where firms charge prices above marginal cost,__________ are zero.

The largest GDP expenditure share historically has been government expenditure.

If we want to calculate the Mexican real GDP in U.S.dollars but adjusted for prices,we use the following:

If we calculate the real GDP using the initial period's prices,we are using a __________ index.If,instead,we use the final period's prices,we are using a __________ index.

Introduction to Macroeconomics

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

If the percent change in the price level is than the percent change in ,__.

To get a more accurate view of the size of countries' economies,we first need to convert each country's GDP to the dollar using and then adjust for .

Since about 1970, income share of GDP has been .

If we calculate the real GDP using the initial period's prices,we are using a index.If,instead,we use the final period's prices,we are using a index.