Exam 2: The Measurement and Structure of the National Economy

The consumer price index (CPI)was 180 for 2009 when using 1995 as the base year (1995 = 100).Now suppose we switch and use 2009 as the base year (2009 = 100).What is the CPI for 1995 with the new base year?

What is the main conceptual difference between GDP and GNP? How different are GDP and GNP for the United States? For countries with many citizens who work abroad?

National saving equals private saving plus government saving,which in turn equals

If C = $400,I = $100,G = $50,NX = $30,and NFP = $5,how much is GDP?

How does chain weighting lead to a different measurement of real GDP than the methods used by the BEA prior to 1996? What are the advantages of chain weighting? What are the disadvantages?

By Marks buys a one-year German government bond (called a bund)for $400.He receives principal and interest totaling $436 one year later.During the year the CPI rose from 150 to 162,but he had thought the CPI would be at 159 by the end of the year.By Marks had expected the real interest rate to be ________,but it actually turned out to be ________.

The value of a producer's output minus the value of the inputs it purchases from other producers is called the producer's

Intermediate goods are

If C = $500,I = $150,G = $100,NX = $40,and GNP = $800,how much is NFP?

Citizens of the country of Heehaw produce hay and provide entertainment services (banjo playing).In one year they produced $15 million worth of hay,with $11 million consumed domestically and the other $4 million sold to neighboring countries.They provided $7 million worth of banjo-playing services,$5 million in Heehaw,and $2 million in neighboring countries.They purchased $6 million worth of soda pop from neighboring countries. Calculate the magnitudes of GNP,GDP,net factor payments from abroad,net exports,and the current account balance.

In 1975,Richard Petty won the NASCAR race in Richmond,earning $6,265.In 2006,Dale Earnhardt,Jr.,won the race,earning $239,166.The CPI index was 52.5 in 1975 and 198.7 in 2006 (base year = 1982-1984).Calculate the real earnings (based on base year 1982-1984)of both Petty and Earnhardt.

Nominal GDP in 1970 was $1,035.6 billion,and in 1980 it was $2,784.2 billion.The GDP price index was 30.6 for 1970 and 60.4 for 1980,where 1992 was the base year.Calculate the percent change in real GDP in the decade from 1970 to 1980.Round off to the nearest percentage point.

The value of real GDP in the current year equals

How are net exports,net factor payments from abroad,and the current account balance related?

In a given year,a country's GDP = $9841,net factor payments from abroad = $889,taxes = $869,transfers received from the government = $296,interest payments on the government's debt = $103,consumption = $8148,and government purchases = $185.The country had private saving equal to

The country of Old Jersey produces milk and butter,and it has published the following macroeconomic data,where quantities are in gallons and prices are dollars per gallon. Between Year 1 and Year 2,nominal GDP grew by

The nominal interest rate minus the inflation rate is the

Fred the farmer purchased five new tractors at $20,000 each.Fred sold his old tractors to other farmers for $50,000.The net increase in GDP of these transactions was

In a given year,a country's GDP = $9841,net factor payments from abroad = $889,taxes = $869,transfers received from the government = $296,interest payments on the government's debt = $103,consumption = $8148,and government purchases = $185.The country had government saving equal to

The expected real interest rate (r)is equal to