Question 1

The consumer price index measures the cost of the consumption of a family of four living in a typical U.S. city.

Accepted Answer

A) True 
 B)False

Question 2

Use the following to answer questions:
Table: Real and Nominal Output  
-(Table: Real and Nominal Output) Look at the table Real and Nominal Output. Nominal output in year 3 is:

Accepted Answer

A) $20. 
B) $50. 
C) $100. 
D) $1,500. 
A) $20. 
B) $50. 
C) $100. 
D) $1,500.

Question 3

Use the following to answer questions :
Table: Per Capita GDP
  
-(Table: Per Capita GDP) Look at the table Per Capita GDP. Per capita real GDP in 2014 was:

Accepted Answer

A) $600. 
B) $800. 
C) $300. 
D) $400. 
A) $600. 
B) $800. 
C) $300. 
D) $400.

Question 4

The underlying principle of the circular-flow diagram is that the flows of money into each sector or market in the economy are greater than those coming out of the sector or market.

Accepted Answer

A) True 
 B)False

Question 5

An increase in the value of GDP over time:

Accepted Answer

A) is always due to an increase in prices. 
B) is always due to an increase in the production of goods and services. 
C) may be due to an increase in prices, in the production of goods and services, or both. 
D) may be due to a decrease in prices, in the production of goods and services, or both. 
A) is always due to an increase in prices. 
B) is always due to an increase in the production of goods and services. 
C) may be due to an increase in prices, in the production of goods and services, or both. 
D) may be due to a decrease in prices, in the production of goods and services, or both.

Question 6

Which of the following is an example of an intermediate good?

Accepted Answer

A) stocks and bonds purchased by a business executive 
B) a cellular telephone purchased by a college student 
C) a wedding ring purchased by an engineer for his fiancée 
D) tires General Motors purchased from Goodyear for new electric cars 
A) stocks and bonds purchased by a business executive 
B) a cellular telephone purchased by a college student 
C) a wedding ring purchased by an engineer for his fiancée 
D) tires General Motors purchased from Goodyear for new electric cars

Question 7

Steel manufactured to make a car is not counted in aggregate output, but the car that results is counted.

Accepted Answer

A) True 
 B)False

Question 8

Use the following to answer questions :
Table: The Consumer Price Index  
-(Table: The Consumer Price Index) Look at the table The Consumer Price Index. The approximate rate of inflation in year 5 is:

Accepted Answer

A) 25%. 
B) 10%. 
C) 19%. 
D) 20%. 
A) 25%. 
B) 10%. 
C) 19%. 
D) 20%.

Question 9

Assume that in the base year (2011), a country's nominal GDP is $10,000 billion. The country has had 5% inflation each year since 2006. Real GDP of 2011 is equal to:

Accepted Answer

A) $10,500 billion. 
B) $11,025 billion. 
C) $10,000 billion. 
D) $9,500 billion. 
A) $10,500 billion. 
B) $11,025 billion. 
C) $10,000 billion. 
D) $9,500 billion.

Question 10

Between 2000 and 2013, the nominal GDP of Venezuela grew by an average of _____ per year, and real GDP grew by an average of _____ per year.

Accepted Answer

A) 84%; 19% 
B) 0%; 50% 
C) 29%; 3% 
D) -10%; -2% 
A) 84%; 19% 
B) 0%; 50% 
C) 29%; 3% 
D) -10%; -2%

Question 11

A price index:

Accepted Answer

A) always includes a base year. 
B) measures the cost of purchasing a market basket of output across different years. 
C) is normalized to 100 for the base year. 
D) always includes a base year, measures the cost of purchasing a market basket of output across different years, and is normalized to 100 for the base year. 
A) always includes a base year. 
B) measures the cost of purchasing a market basket of output across different years. 
C) is normalized to 100 for the base year. 
D) always includes a base year, measures the cost of purchasing a market basket of output across different years, and is normalized to 100 for the base year.

Question 12

Use the following to answer questions :
Table: Lemonade and Cookies
  
-(Table: Lemonade and Cookies) Look at the table Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. The growth rate of nominal GDP from 2013 to 2014 was:

Accepted Answer

A) 5%. 
B) 10%. 
C) 11.25%. 
D) 45%. 
A) 5%. 
B) 10%. 
C) 11.25%. 
D) 45%.

Question 13

Which one of the following equations is correct?

Accepted Answer

A) GDP = C + I + G + IM - X. 
B) GDP = C + I + G + X - IM. 
C) GDP = C + I + G + X + IM. 
D) GDP = C + I + G - T + TR. 
A) GDP = C + I + G + IM - X. 
B) GDP = C + I + G + X - IM. 
C) GDP = C + I + G + X + IM. 
D) GDP = C + I + G - T + TR.

Question 14

The national income and product accounts are calculated by:

Accepted Answer

A) the Congressional Budget Office. 
B) the Federal Reserve. 
C) the Bureau of Economic Analysis. 
D) the Office of Management and Budget. 
A) the Congressional Budget Office. 
B) the Federal Reserve. 
C) the Bureau of Economic Analysis. 
D) the Office of Management and Budget.

Question 15

The total value of all final goods and services produced in a given year, calculated using the prices of a selected base year is:

Accepted Answer

A) real GDP. 
B) nominal GDP. 
C) net exports. 
D) consumption spending. 
A) real GDP. 
B) nominal GDP. 
C) net exports. 
D) consumption spending.

Question 16

The aggregate price level is the:

Accepted Answer

A) average price of shares on the stock market. 
B) average price of commodities. 
C) overall level of prices. 
D) same as the average price of gasoline. 
A) average price of shares on the stock market. 
B) average price of commodities. 
C) overall level of prices. 
D) same as the average price of gasoline.

Question 17

The federal government began issuing estimates of gross domestic product and gross national product during the Civil War.

Accepted Answer

A) True 
 B)False

Question 18

Use the following to answer questions:
Scenario: Real GDP
Suppose that in year 1 an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next year the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each.
-(Scenario: Real GDP) Look at the scenario Real GDP. The growth rate of nominal GDP from year 1 to year 2 is:

Accepted Answer

A) 10%. 
B) 7.8%. 
C) 19.7%. 
D) 8.8%. 
A) 10%. 
B) 7.8%. 
C) 19.7%. 
D) 8.8%.

Question 19

The national accounts keep track of everything EXCEPT:

Accepted Answer

A) the spending of consumers and the government. 
B) the sales of producers. 
C) business investment. 
D) exchange rates. 
A) the spending of consumers and the government. 
B) the sales of producers. 
C) business investment. 
D) exchange rates.

Question 20

If the cost of a market basket is $200 in year 1 and $230 in year 2, the price index for year 2 using year 1 as the base is:

Accepted Answer

A) 100. 
B) 115. 
C) 130 
D) 200. 
A) 100. 
B) 115. 
C) 130 
D) 200.

The consumer price index measures the cost of the consumption of a family of four living in a typical U.S. city.

Use the following to answer questions: Table: Real and Nominal Output -(Table: Real and Nominal Output) Look at the table Real and Nominal Output. Nominal output in year 3 is:

Use the following to answer questions : Table: Per Capita GDP -(Table: Per Capita GDP) Look at the table Per Capita GDP. Per capita real GDP in 2014 was:

The underlying principle of the circular-flow diagram is that the flows of money into each sector or market in the economy are greater than those coming out of the sector or market.

An increase in the value of GDP over time:

Which of the following is an example of an intermediate good?

Steel manufactured to make a car is not counted in aggregate output, but the car that results is counted.

Use the following to answer questions : Table: The Consumer Price Index -(Table: The Consumer Price Index) Look at the table The Consumer Price Index. The approximate rate of inflation in year 5 is:

Assume that in the base year (2011), a country's nominal GDP is $10,000 billion. The country has had 5% inflation each year since 2006. Real GDP of 2011 is equal to:

Between 2000 and 2013, the nominal GDP of Venezuela grew by an average of _ per year, and real GDP grew by an average of _ per year.

A price index:

Use the following to answer questions : Table: Lemonade and Cookies -(Table: Lemonade and Cookies) Look at the table Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. The growth rate of nominal GDP from 2013 to 2014 was:

Which one of the following equations is correct?

The national income and product accounts are calculated by:

The total value of all final goods and services produced in a given year, calculated using the prices of a selected base year is:

The aggregate price level is the:

The federal government began issuing estimates of gross domestic product and gross national product during the Civil War.

The national accounts keep track of everything EXCEPT:

If the cost of a market basket is $200 in year 1 and $230 in year 2, the price index for year 2 using year 1 as the base is:

First Principles

Economic Models

Supply and Demand

International Trade 5

Macroeconomics: the Big Picture

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Fiscal Policy Appendix Taxes and the Multiplier

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Events and Ideas

Open-Economy Macroeconomics

Graphs in Economics

toward a Fuller Understanding of Present Value

Filters

Exam 7: Gdp and Cpi: Tracking the Macroeconomy

The consumer price index measures the cost of the consumption of a family of four living in a typical U.S. city.

Use the following to answer questions: Table: Real and Nominal Output -(Table: Real and Nominal Output) Look at the table Real and Nominal Output. Nominal output in year 3 is:

Use the following to answer questions : Table: Per Capita GDP -(Table: Per Capita GDP) Look at the table Per Capita GDP. Per capita real GDP in 2014 was:

The underlying principle of the circular-flow diagram is that the flows of money into each sector or market in the economy are greater than those coming out of the sector or market.

An increase in the value of GDP over time:

Which of the following is an example of an intermediate good?

Steel manufactured to make a car is not counted in aggregate output, but the car that results is counted.

Use the following to answer questions : Table: The Consumer Price Index -(Table: The Consumer Price Index) Look at the table The Consumer Price Index. The approximate rate of inflation in year 5 is:

Assume that in the base year (2011), a country's nominal GDP is $10,000 billion. The country has had 5% inflation each year since 2006. Real GDP of 2011 is equal to:

Between 2000 and 2013, the nominal GDP of Venezuela grew by an average of _____ per year, and real GDP grew by an average of _____ per year.

A price index:

Use the following to answer questions : Table: Lemonade and Cookies -(Table: Lemonade and Cookies) Look at the table Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. The growth rate of nominal GDP from 2013 to 2014 was:

Which one of the following equations is correct?

The national income and product accounts are calculated by:

The total value of all final goods and services produced in a given year, calculated using the prices of a selected base year is:

The aggregate price level is the:

The federal government began issuing estimates of gross domestic product and gross national product during the Civil War.

The national accounts keep track of everything EXCEPT:

If the cost of a market basket is $200 in year 1 and $230 in year 2, the price index for year 2 using year 1 as the base is:

First Principles

Economic Models

Supply and Demand

International Trade 5

Macroeconomics: the Big Picture

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Fiscal Policy Appendix Taxes and the Multiplier

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Events and Ideas

Open-Economy Macroeconomics

Graphs in Economics

toward a Fuller Understanding of Present Value

Filters

Between 2000 and 2013, the nominal GDP of Venezuela grew by an average of _ per year, and real GDP grew by an average of _ per year.