Question 1

A closed economy's ______ equals its ______.

Accepted Answer

A)  consumption; income 
B)  consumption; expenditure on goods and services 
C)  expenditure on goods; expenditures on services 
D)  income; expenditure on goods and services 
A)  consumption; income 
B)  consumption; expenditure on goods and services 
C)  expenditure on goods; expenditures on services 
D)  income; expenditure on goods and services

Question 2

In the national income accounts,all of the following are classified as government purchases except:

Accepted Answer

A)  payments made to the recipients of the public pension system. 
B)  services provided by police officers. 
C)  purchases of military hardware. 
D)  services provided by senators in Ottawa. 
A)  payments made to the recipients of the public pension system. 
B)  services provided by police officers. 
C)  purchases of military hardware. 
D)  services provided by senators in Ottawa.

Question 3

The core inflation rate:

Accepted Answer

A)  measures the change in producer prices. 
B)  is measured using a Paasche index. 
C)  excludes food and energy prices. 
D)  includes the price of exports and the price of imports. 
A)  measures the change in producer prices. 
B)  is measured using a Paasche index. 
C)  excludes food and energy prices. 
D)  includes the price of exports and the price of imports.

Question 4

Real GDP means the value of goods and services is measured in ______ prices.

Accepted Answer

A)  current 
B)  actual 
C)  constant 
D)  average 
A)  current 
B)  actual 
C)  constant 
D)  average

Question 5

All of the following actions are investments in the sense of the term used by macroeconomists except:

Accepted Answer

A)  IBM's building a new factory. 
B)  corner candy store's buying a new computer. 
C)  John Simpson's buying a newly constructed home. 
D)  Sandra Wu's buying 100 shares of IBM stock. 
A)  IBM's building a new factory. 
B)  corner candy store's buying a new computer. 
C)  John Simpson's buying a newly constructed home. 
D)  Sandra Wu's buying 100 shares of IBM stock.

Question 6

A woman marries her butler.Before they were married,she paid him $20,000 per year.He continues to wait on her as before (but as a husband rather than as a wage earner).She earns $1,000,000 per year both before and after her marriage.If GDP were changed so that it truly measured the sum of all final economic activity,the marriage would:

Accepted Answer

A)  decrease GDP. 
B)  increase GDP. 
C)  leave GDP unchanged. 
D)  first decrease and then increase GDP. 
A)  decrease GDP. 
B)  increase GDP. 
C)  leave GDP unchanged. 
D)  first decrease and then increase GDP.

Question 7

If GDP (measured in billions of current dollars)is $5,465 and the sum of consumption,investment,and government purchases is $5,496,while exports equal $673,imports are:

Accepted Answer

A)  $673. 
B)  -$673. 
C)  $704. 
D)  -$704. 
A)  $673. 
B)  -$673. 
C)  $704. 
D)  -$704.

Question 8

Assume that total output consists of 4 apples and 6 oranges and that apples cost $1 each and oranges cost $0.50 each.In this case,the value of GDP is:

Accepted Answer

A)  10 pieces of fruit. 
B)  $7. 
C)  $8. 
D)  $10. 
A)  10 pieces of fruit. 
B)  $7. 
C)  $8. 
D)  $10.

Question 9

A fixed-weight price index like the CPI ______ the change in the cost of living because it ______ take into account that people can substitute less expensive goods for ones that have become more expensive.

Accepted Answer

A)  underestimates; does not 
B)  overestimates; does 
C)  accurately estimates; does 
D)  overestimates; does not 
A)  underestimates; does not 
B)  overestimates; does 
C)  accurately estimates; does 
D)  overestimates; does not

Question 10

GNP equals GDP ______ income earned domestically by foreigners ______ income that nationals earn abroad.

Accepted Answer

A)  plus; plus 
B)  minus; minus 
C)  minus; plus 
D)  plus; minus 
A)  plus; plus 
B)  minus; minus 
C)  minus; plus 
D)  plus; minus

Question 11

In the national income accounts,government purchases are goods and services purchased by:

Accepted Answer

A)  the federal government. 
B)  the federal and provincial governments. 
C)  provincial and municipal governments. 
D)  federal,provincial,and municipal governments. 
A)  the federal government. 
B)  the federal and provincial governments. 
C)  provincial and municipal governments. 
D)  federal,provincial,and municipal governments.

Question 12

When bread is baked but put away for later sale,this is called:

Accepted Answer

A)  waste. 
B)  saving. 
C)  fixed investment. 
D)  investment in inventory. 
A)  waste. 
B)  saving. 
C)  fixed investment. 
D)  investment in inventory.

Question 13

The market value of all final goods and services produced within an economy in a given period is called:

Accepted Answer

A)  industrial production. 
B)  gross domestic product. 
C)  the GDP deflator. 
D)  general durable purchases. 
A)  industrial production. 
B)  gross domestic product. 
C)  the GDP deflator. 
D)  general durable purchases.

Question 14

If total investment (measured in billions of current dollars)equals $741,business fixed investment is $524,and residential fixed investment is $222,then inventory investment is:

Accepted Answer

A)  $5. 
B)  -$5. 
C)  $15. 
D)  -$15. 
A)  $5. 
B)  -$5. 
C)  $15. 
D)  -$15.

Question 15

If the GDP deflator in 2009 equals 1.25 and nominal GDP in 2009 equals $1.5 trillion,what is the value of real GDP in 2009?

Accepted Answer

A)  $1.2 trillion 
B)  $1.25 trillion 
C)  $1.5 trillion 
D)  $1.875 trillion 
A)  $1.2 trillion 
B)  $1.25 trillion 
C)  $1.5 trillion 
D)  $1.875 trillion

Question 16

Into which of the three categories-employed,unemployed,not in the labour force-would an interviewer for the Labour Force Survey place each of the following people? Explain.
a.Jennifer Temple is working as a second-grade schoolteacher.
b.Frank Peabody is attending college full time to earn a degree in elementary education.
c.Martin Hampton is working as a high school social science teacher,but is at home sick with the flu.
d.Kyle Brown does not currently have a job.He wants to be an elementary schoolteacher.He has the appropriate degree.He has not looked for a position in the last month because he doesn't believe schools are currently hiring.
e.Brenda Dewey does not currently have a job.She has sent her resume to several school districts in the past week in the hope of finding a teaching position.

Accepted Answer

a. employed 
b. not

Question 17

The CPI is a:

Accepted Answer

A)  Laspeyres price index. 
B)  Paasche price index. 
C)  Laspeyres quantity index. 
D)  Paasche quantity index. 
A)  Laspeyres price index. 
B)  Paasche price index. 
C)  Laspeyres quantity index. 
D)  Paasche quantity index.

Question 18

If the unemployment rate is 6 percent and the number of employed is 24 million,then the labour force equals ______ million.

Accepted Answer

A)  22.6 
B)  24.0 
C)  25.5 
D)  The answer cannot be determined with the information given. 
A)  22.6 
B)  24.0 
C)  25.5 
D)  The answer cannot be determined with the information given.

Question 19

Nominal GDP is measured in _____ dollars _____ time.

Accepted Answer

A)  current; at a point in 
B)  current; over a period of 
C)  constant; at a point in 
D)  constant; over a period of 
A)  current; at a point in 
B)  current; over a period of 
C)  constant; at a point in 
D)  constant; over a period of

Question 20

The number of households interviewed in the monthly labour force survey conducted by Statistics Canada is approximately:

Accepted Answer

A)  2,600. 
B)  5,600. 
C)  26,000. 
D)  56,000. 
A)  2,600. 
B)  5,600. 
C)  26,000. 
D)  56,000.

A closed economy's equals its .

In the national income accounts,all of the following are classified as government purchases except:

The core inflation rate:

Real GDP means the value of goods and services is measured in ______ prices.

All of the following actions are investments in the sense of the term used by macroeconomists except:

If GDP (measured in billions of current dollars)is $5,465 and the sum of consumption,investment,and government purchases is $5,496,while exports equal $673,imports are:

Assume that total output consists of 4 apples and 6 oranges and that apples cost $1 each and oranges cost $0.50 each.In this case,the value of GDP is:

A fixed-weight price index like the CPI the change in the cost of living because it take into account that people can substitute less expensive goods for ones that have become more expensive.

GNP equals GDP income earned domestically by foreigners income that nationals earn abroad.

In the national income accounts,government purchases are goods and services purchased by:

When bread is baked but put away for later sale,this is called:

The market value of all final goods and services produced within an economy in a given period is called:

If total investment (measured in billions of current dollars)equals $741,business fixed investment is $524,and residential fixed investment is $222,then inventory investment is:

If the GDP deflator in 2009 equals 1.25 and nominal GDP in 2009 equals $1.5 trillion,what is the value of real GDP in 2009?

The CPI is a:

If the unemployment rate is 6 percent and the number of employed is 24 million,then the labour force equals ______ million.

Nominal GDP is measured in _ dollars _ time.

The number of households interviewed in the monthly labour force survey conducted by Statistics Canada is approximately:

The Science of Macroeconomics

The Open Economy

Unemployment

Economic Growth I

Economic Growth II

Introduction to Economic Fluctuations

Aggregate Demand I

Aggregate Supply and the Short-Run

Stabilization Policy

Government Debt and Budget Deficits

Investment

Money Supply and Money Demand

The Financial System

Filters

Exam 2: The Data of Macroeconomics

A closed economy's ______ equals its ______.

In the national income accounts,all of the following are classified as government purchases except:

The core inflation rate:

Real GDP means the value of goods and services is measured in ______ prices.

All of the following actions are investments in the sense of the term used by macroeconomists except:

If GDP (measured in billions of current dollars)is $5,465 and the sum of consumption,investment,and government purchases is $5,496,while exports equal $673,imports are:

Assume that total output consists of 4 apples and 6 oranges and that apples cost $1 each and oranges cost $0.50 each.In this case,the value of GDP is:

A fixed-weight price index like the CPI ______ the change in the cost of living because it ______ take into account that people can substitute less expensive goods for ones that have become more expensive.

GNP equals GDP ______ income earned domestically by foreigners ______ income that nationals earn abroad.

In the national income accounts,government purchases are goods and services purchased by:

When bread is baked but put away for later sale,this is called:

The market value of all final goods and services produced within an economy in a given period is called:

If total investment (measured in billions of current dollars)equals $741,business fixed investment is $524,and residential fixed investment is $222,then inventory investment is:

If the GDP deflator in 2009 equals 1.25 and nominal GDP in 2009 equals $1.5 trillion,what is the value of real GDP in 2009?

The CPI is a:

If the unemployment rate is 6 percent and the number of employed is 24 million,then the labour force equals ______ million.

Nominal GDP is measured in _____ dollars _____ time.

The number of households interviewed in the monthly labour force survey conducted by Statistics Canada is approximately:

The Science of Macroeconomics

The Open Economy

Unemployment

Economic Growth I

Economic Growth II

Introduction to Economic Fluctuations

Aggregate Demand I

Aggregate Supply and the Short-Run

Stabilization Policy

Government Debt and Budget Deficits

Investment

Money Supply and Money Demand

The Financial System

Filters

A closed economy's equals its .

A fixed-weight price index like the CPI the change in the cost of living because it take into account that people can substitute less expensive goods for ones that have become more expensive.

GNP equals GDP income earned domestically by foreigners income that nationals earn abroad.

Nominal GDP is measured in _ dollars _ time.