Exam 7: Gdp and Cpi: Tracking the Macroeconomy

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. Nominal GDP in 2014 was:

Use the following to answer questions : Figure: Circular-Flow Model -(Figure: Circular-Flow Model) Look at the figure Circular-Flow Model. If the circular-flow model is in equilibrium (the sum of money flowing into each box is equal to the sum of the money flowing out of it) and there is an increase in imports, which of the following is likely to happen?

Which of the following is NOT a government transfer?

Which of the following measures is likely to respond most quickly to price changes?

Use the following to answer questions : -(Table: Muffin Price Index) Look at the table Muffin Price Index. A college town has many small coffee shops, and they all sell muffins. As an economics project you have been assigned to compile a muffin price index (MPI). The base year is 2009. Use these data to compute the MPI for each year.

The producer price index is often regarded as a warning sign of inflation because:

If the dollar amount of GDP decreases, then aggregate output is definitely decreasing.

An example of investment spending is the:

The consumer price index is used to index income tax brackets.

In the circular-flow diagram, a person or a group of people who share income is a:

Which of the following is a measure of changes in the cost of a market basket of raw commodities, such as steel, electricity, and coal?

Use the following to answer questions : -(Scenario: Market Basket) Look at the scenario Market Basket. What is the value of the price index in 2010?

In the factor markets:

Use the following to answer questions : Table: Price and Output Data -(Table: Price and Output Data) Look at the table Price and Output Data. The value of year 3's output in real dollars is: