Exam 2: The Data of Macroeconomics

In the national income accounts,consumption expenditures include all of the following except household purchases of:

Real GDP per capita is an imperfect measure of economic well-being because it does not value home production or production in the underground economy,among other factors.Give at least two examples that show why the omission of these types of items will make a difference in evaluating economic well-being.One example should explain how the omission distorts comparisons of economic well-being across countries,and the other example should explain how the omission distorts comparisons of economic well-being in the same country over time.

Which of the following is a stock variable?

If GDP (measured in billions of current dollars)is $1,600,consumption is $891,investment is $318,and government purchases are $367,then net exports are:

There are a number of statistics computed to measure the price level,such as the GDP deflator and the CPI.The choice of which of these measures to use depends in many cases on the specific question in which you are interested.For each of the following situations,state whether the CPI or GDP deflator is a more appropriate measure to use and explain why the statistic is preferred. a.You are interested in looking at the impact of higher prices of imported oil in the overall cost of living. b.The government is interested in whether increases in defense spending are affecting the price level. c.An economic consulting firm is investigating the impact on the aggregate price level of more computers and electronic technology used in production.

The GDP deflator is equal to:

One opposition MP in Ottawa has criticized the government for making an inadequate effort to stimulate the economy based on data from the labour force survey that shows the unemployment rate has risen.A government MP counters that the number of employed workers in the economy has increased over the same period,based on the same survey.Explain how both MPs can be correct.

In a closed economy,GDP is all of the following except the total:

Unlike the GDP deflator,the CPI includes the prices of:

Two equivalent ways to view a closed economy's GDP are as the:

According to Okun's law,if real GDP rises by about 2 percent in one year's time,the unemployment rate will rise by about______ percent.

According to the usual seasonal pattern of the Canadian economy,GDP is highest in the quarter of the year that includes:

The investment component of GDP includes all of the following except:

The labour-force participation rate is the percentage of the:

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.The marriage:

Real GDP is a better measure of economic well-being than nominal GDP,because real GDP:

Economic statistics are not perfect.Explain at least one way in which each of the following statistics as currently calculated in Canada fails to completely or accurately measure the corresponding economic concept (in parentheses): a.real GDP per person (economic well-being) b.CPI (cost of living) c.unemployment rate (involuntary unemployment)

In the national income accounts,the purchase of durables,nondurables,and services by households are classified as:

Which of the following is a flow variable?

Assume that the market basket of goods and services purchased in 2004 by the average family in Canada costs $14,000 in 2004 prices,whereas the same basket costs $21,000 in 2014 prices.However,the basket of goods and services actually purchased by the average family in 2014 costs $20,000 in 2014 prices,whereas this same basket would have cost $15,000 in 2004 prices.Given this data,a Paasche index of 2014 prices relative to 2004 prices would be: