Exam 7: Gdp and the Cpi: Tracking the Macroeconomy

Use the following to answer questions: -(Figure 7-2: Expanded Circular-Flow Model)Use Figure 7-2: Expanded Circular-Flow Model The government has a budget:

The underlying principle of the circular-flow diagram is that the flows of money into each sector or market in the economy are equal to those coming out of the sector or market.

Use the following to answer questions: -(Table: The Consumer Price Index)Use Table: The Consumer Price Index.The approximate rate of inflation in year 2 is:

Use the following to answer questions: -(Table: Lemonade and Cookies)Use Table: Lemonade and Cookies.Assume that an economy produces only lemonade and cookies.Assuming that 2014 was the base year,the growth rate of real GDP from 2013 to 2014 was:

The industrial producer price 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.

Firms demand resources in the factor markets.

In the factor markets:

If nominal GDP increases from $10 trillion to $12 trillion in a year,it can only mean that aggregate output grew by 20%.

In the circular-flow diagram,the places where goods and services are bought and sold are the:

If real GDP falls when nominal GDP increases,then prices have increased.

Use the following to answer questions: -(Figure 7-1: Circular-Flow Model)Use Figure 7-1: Circular-Flow Model.What are net exports?

Inflation can be measured by the:

Suppose that nominal GDP is $1 000 in 2009 and $1 500 in 2010.If the overall price level increased by _____% between 2009 and 2010,we could say that real GDP _____.

The consumer price index is calculated by Statistics Canada.

Which factor is NOT included in investment spending in the national income accounts?

A country's living standard is BEST measured by:

If the consumer price index for 2009 was 148.3 and for 2010 was 152.5,what was the inflation rate between the two years?

An intermediate good would be:

Bombardier buys $3 million worth of steel,$2.5 million worth of computer hardware and software,and $1 million worth of mechanical tools to manufacture a certain model of train.Bombardier sells this particular model at $10 million.The value added by Bombardier is equal to:

The calculation of aggregate output does NOT include the value of: