Exam 7: Gdp and the Cpi: Tracking the Macroeconomy

Use the following to answer questions: -(Table: Peanut Butter and Jelly Economy)Use Table: Peanut Butter and Jelly Economy.How much of the increase in nominal GDP between 2010 and 2011 was due to inflation?

Use the following to answer questions: -The aggregate price level is the:

_____ is considered to be an IOU.

The circular-flow diagram illustrates the growth of income inequality in Canada.

Which example illustrates consumption expenditure?

The inflation rate is measured as the percentage change per year in a price index.

Firms supply goods and services in the product markets.

Use the following to answer questions: -(Figure 7-2: Expanded Circular-Flow Model)Use Figure 7-2: Expanded Circular-Flow Model.How does the government finance its spending?

According to the circular-flow diagram,which economic agents engage in consumer spending?

A firm is an organization that produces goods and/or services for sale.

The aggregate price level is a measure of the overall level of prices in the economy.

The equation that breaks GDP down by the four sources of aggregate spending is:

Chain linking is the method of calculating changes in real GDP using averages between an early base year and a late base year.

Economists include the prices of only the most important consumer goods,such as food and energy,in the aggregate price level.

Double-counting in the GDP can be avoided by including both final and intermediate production.

Use the following to answer question : -(Table: Pizza Economy I)Use Table: Pizza Economy I.GDP in this economy is:

S&P/TSX Composite Index is likely to respond more quickly to price changes than are the other indexes,so it is regarded as a warning sign of inflation.

The total value of all final goods and services produced in the economy in a given year,calculated with the prices current in the year in which the output is produced,is real GDP.

In 2011,consumption spending is $7 000,government purchases of goods and services is $2 000,and investment spending is $1 500.If GDP for 2011 is $10 300,exports are _____ and imports are _____.

Use the following to answer questions: -(Table: The Consumer Price Index)Use Table: The Consumer Price Index.The approximate rate of inflation in year 3 is: