Exam 7: Gdp and the Cpi: Tracking the Macroeconomy

Use the following to answer questions: -(Figure 7-1: Circular-Flow Model)Use Figure 7-1: 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 investment spending,holding everything else constant,which outcome is likely to occur?

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.The growth rate of nominal GDP from year 1 to year 2 is _____%.

An example of a government transfer is a(n):

Use the following to answer questions: -(Table: Per Capita GDP)Use Table: Per Capita GDP.If 2011 is the base year,real GDP in 2011 was:

Use the following to answer questions: -(Table: Price Index)Use Table: Price Index.Which year is MOST likely to be the base year?

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.Using year 1 as the base year,the growth rate of real GDP from year 1 to year 2 is _____%.

In the product markets:

GDP is the:

Use the following to answer questions: -(Figure 7-1: Circular-Flow Model)Use Figure 7-1: 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 a decrease in government spending,holding everything else constant,which outcome is likely to occur?

Which transaction is included in the nation's gross domestic product?

The scale MOST often used to compare economic performance in other years is:

Use the following to answer questions: -(Table: Price Index)What is the inflation rate between 2010 and 2011?

Use the following to answer questions: -(Table: Peanut Butter and Jelly Economy)Use Table: Peanut Butter and Jelly Economy.Between 2010 and 2011,nominal GDP _____ by _____%.

If we add up the consumer spending on goods and services,investment spending,government purchases of goods and services,and the value of exports,then subtract the value of imports,we have measured the nation's:

Chained dollars is:

Use the following to answer questions: -(Figure 7-1: Circular-Flow Model)Use Figure 7-1: Circular-Flow Model.What is the value of GDP in this economy?

In the circular-flow diagram,an organization that produces goods and services for sale is a:

Which transaction is included in a current year's GDP as investment spending?

Which transaction would NOT be counted in GDP?

Use the following to answer questions: -(Figure 7-2: Expanded Circular-Flow Model)Use Figure 7-2: Expanded Circular-Flow Model.What is GDP?