Question 1

Nominal GDP is the __________ of all goods and services produced in a period of time using __________ prices.

Accepted Answer

A) value;1945 
B) summation;current 
C) value;a previous year's 
D) value;current 
E) summation;base year 
A) value;1945 
B) summation;current 
C) value;a previous year's 
D) value;current 
E) summation;base year

Question 2

According to the expenditure approach,if Y is GDP,C is consumption,I is investment,G is government purchases,and NX is net exports,the national income identity can be written as:

Accepted Answer

A) Y + C - G = I + NX. 
B) Y - C = I + G - NX. 
C) Y - C - G - I = NX. 
D) Y = (C + I + G)/NX. 
E) Y = C + I + G. 
A) Y + C - G = I + NX. 
B) Y - C = I + G - NX. 
C) Y - C - G - I = NX. 
D) Y = (C + I + G)/NX. 
E) Y = C + I + G.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

When a state builds a new penitentiary,__________ rise(s),but that does not imply that __________ improve(s).

Accepted Answer

A) income;welfare 
B) GDP;taxes 
C) GDP;transfers 
D) GDP;welfare 
E) taxes;costs 
A) income;welfare 
B) GDP;taxes 
C) GDP;transfers 
D) GDP;welfare 
E) taxes;costs

Question 5

If Croatia's price level is higher than the U.S.price level,Croatia's dollar-denominated GDP,calculated using price adjustments,will appear smaller than if simply calculated with the exchange rate.

Accepted Answer

A) True 
 B)False

Question 6

If the nominal GDP rises by 6 percent and the price level rises by 3 percent,then the real GDP __________ by __________.

Accepted Answer

A) falls;3 percent 
B) rises;9 percent 
C) rises;3 percent 
D) falls;9 percent 
E) none of the above 
A) falls;3 percent 
B) rises;9 percent 
C) rises;3 percent 
D) falls;9 percent 
E) none of the above

Question 7

Consider the data in the following table,which represents the total production of the country Tucommodatia.They produce only consumer goods.   
(a)Calculate Real GDP for all three years.
(b)Calculate the Consumer Price Index (CPI),using 2007 as the base year.Identify whether or not there was inflation from the previous year.

Accepted Answer

Real GDP is a form of the Paasche Index,

Question 8

-Consider Table 2.3.Using the Paasche index,the real GDP in 2005 is:

Accepted Answer

A) $9,150. 
B) $8,500. 
C) $8,600. 
D) $9,025. 
E) $8,475. 
A) $9,150. 
B) $8,500. 
C) $8,600. 
D) $9,025. 
E) $8,475.

Question 9

-Consider Table 2.3.Using the Laspeyres index,the real GDP in 2004 is:

Accepted Answer

A) $8,900. 
B) $8,500. 
C) $1,500. 
D) $15,500. 
E) $9,150. 
A) $8,900. 
B) $8,500. 
C) $1,500. 
D) $15,500. 
E) $9,150.

Question 10

Which of the following counts toward changes in the current GDP?

Accepted Answer

A) A student buys another year of tuition. 
B) You purchase a used stereo from a friend. 
C) The government builds a new highway. 
D) You fix your own sink. 
E) a and c 
A) A student buys another year of tuition. 
B) You purchase a used stereo from a friend. 
C) The government builds a new highway. 
D) You fix your own sink. 
E) a and c

Question 11

-Consider Table 2.3.Using the Laspeyres index,inflation between 2004 and 2005 was about:

Accepted Answer

A) 0 percent. 
B) 5 percent. 
C) 1 percent. 
D) 6 percent. 
E) Not enough information is given. 
A) 0 percent. 
B) 5 percent. 
C) 1 percent. 
D) 6 percent. 
E) Not enough information is given.

Question 12

In 2005,the U.S.GDP was about __________,and __________ was the largest share.

Accepted Answer

A) $5 trillion;consumption 
B) $12.5 trillion;government expenditures 
C) $10.5 trillion;investment 
D) $12.5 billion;consumption 
E) $12.5 trillion;consumption 
A) $5 trillion;consumption 
B) $12.5 trillion;government expenditures 
C) $10.5 trillion;investment 
D) $12.5 billion;consumption 
E) $12.5 trillion;consumption

Question 13

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

Accepted Answer

A) defense expenditures 
B) firm expenditures on equipment 
C) residential expenditures 
D) household service expenditures 
E) none of the above 
A) defense expenditures 
B) firm expenditures on equipment 
C) residential expenditures 
D) household service expenditures 
E) none of the above

Question 14

Real GDP is given by __________,where the price level is the __________.

Accepted Answer

A) Real GDP = Nominal GDP $\times$ Price level;CPI 
B) Real GDP = Nominal GDP ÷ Price level;GDP deflator 
C) Real GDP = Nominal GDP + Price level;GDP deflator 
D) Real GDP = Nominal GDP - Price level;GDP deflator 
E) Real GDP = Nominal GDP ÷ Price level;CPI 
A) Real GDP = Nominal GDP $\times$ Price level;CPI 
B) Real GDP = Nominal GDP ÷ Price level;GDP deflator 
C) Real GDP = Nominal GDP + Price level;GDP deflator 
D) Real GDP = Nominal GDP - Price level;GDP deflator 
E) Real GDP = Nominal GDP ÷ Price level;CPI

Question 15

Since about __________,United States expenditure shares by households,firms,and the government have been relatively __________.

Accepted Answer

A) 1939;constant 
B) the Great Depression era;constant 
C) 1950;variable 
D) 1950;constant 
E) 1929 until 1945;constant 
A) 1939;constant 
B) the Great Depression era;constant 
C) 1950;variable 
D) 1950;constant 
E) 1929 until 1945;constant

Question 16

By how much does GDP change between 2004 and 2005 in the following scenario? In 2004,a rich woman has a butler and pays him $50,000 to perform butler services.In 2005,she marries the butler but he continues to perform butler services.

Accepted Answer

A) GDP rises by $50,000. 
B) GDP is unchanged. 
C) GDP falls by $50,000. 
D) GDP rises by $25,000. 
E) Not enough information is given. 
A) GDP rises by $50,000. 
B) GDP is unchanged. 
C) GDP falls by $50,000. 
D) GDP rises by $25,000. 
E) Not enough information is given.

Question 17

Which of the following does not count toward changes in the current GDP?

Accepted Answer

A) A student buys another year of tuition. 
B) You buy a used car from your parents. 
C) The local police station buys new squad cars. 
D) The Pentagon buys gasoline. 
E) b and c 
A) A student buys another year of tuition. 
B) You buy a used car from your parents. 
C) The local police station buys new squad cars. 
D) The Pentagon buys gasoline. 
E) b and c

Question 18

When you cook yourself dinner,you are contributing to economic activity,but it is not measured in GDP.

Accepted Answer

A) True 
 B)False

Nominal GDP is the of all goods and services produced in a period of time using prices.

According to the expenditure approach,if Y is GDP,C is consumption,I is investment,G is government purchases,and NX is net exports,the national income identity can be written as:

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

When a state builds a new penitentiary, rise(s),but that does not imply that improve(s).

If Croatia's price level is higher than the U.S.price level,Croatia's dollar-denominated GDP,calculated using price adjustments,will appear smaller than if simply calculated with the exchange rate.

If the nominal GDP rises by 6 percent and the price level rises by 3 percent,then the real GDP by .

-Consider Table 2.3.Using the Paasche index,the real GDP in 2005 is:

-Consider Table 2.3.Using the Laspeyres index,the real GDP in 2004 is:

Which of the following counts toward changes in the current GDP?

-Consider Table 2.3.Using the Laspeyres index,inflation between 2004 and 2005 was about:

In 2005,the U.S.GDP was about ,and was the largest share.

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

Real GDP is given by ,where the price level is the .

Since about ,United States expenditure shares by households,firms,and the government have been relatively .

By how much does GDP change between 2004 and 2005 in the following scenario? In 2004,a rich woman has a butler and pays him $50,000 to perform butler services.In 2005,she marries the butler but he continues to perform butler services.

Which of the following does not count toward changes in the current GDP?

When you cook yourself dinner,you are contributing to economic activity,but it is not measured in GDP.

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

Nominal GDP is the __________ of all goods and services produced in a period of time using __________ prices.

According to the expenditure approach,if Y is GDP,C is consumption,I is investment,G is government purchases,and NX is net exports,the national income identity can be written as:

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

When a state builds a new penitentiary,__________ rise(s),but that does not imply that __________ improve(s).

If Croatia's price level is higher than the U.S.price level,Croatia's dollar-denominated GDP,calculated using price adjustments,will appear smaller than if simply calculated with the exchange rate.

If the nominal GDP rises by 6 percent and the price level rises by 3 percent,then the real GDP __________ by __________.

-Consider Table 2.3.Using the Paasche index,the real GDP in 2005 is:

-Consider Table 2.3.Using the Laspeyres index,the real GDP in 2004 is:

Which of the following counts toward changes in the current GDP?

-Consider Table 2.3.Using the Laspeyres index,inflation between 2004 and 2005 was about:

In 2005,the U.S.GDP was about __________,and __________ was the largest share.

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

Real GDP is given by __________,where the price level is the __________.

Since about __________,United States expenditure shares by households,firms,and the government have been relatively __________.

By how much does GDP change between 2004 and 2005 in the following scenario? In 2004,a rich woman has a butler and pays him $50,000 to perform butler services.In 2005,she marries the butler but he continues to perform butler services.

Which of the following does not count toward changes in the current GDP?

When you cook yourself dinner,you are contributing to economic activity,but it is not measured in GDP.

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

Nominal GDP is the of all goods and services produced in a period of time using prices.

When a state builds a new penitentiary, rise(s),but that does not imply that improve(s).

If the nominal GDP rises by 6 percent and the price level rises by 3 percent,then the real GDP by .

In 2005,the U.S.GDP was about ,and was the largest share.

Real GDP is given by ,where the price level is the .

Since about ,United States expenditure shares by households,firms,and the government have been relatively .