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 a decrease in exports,holding everything else constant,which outcome is likely to occur?

Which item would NOT be included in GDP?

Use the following to answer questions: -(Table: Per Capita GDP)Use Table: Per Capita GDP.If 2011 is the base year,real GDP in 2014 was:

In the circular-flow diagram,firms:

The national income and product accounts keep track of:

The GDP deflator for a given year is equal to 100 times nominal GDP for that year minus real GDP for that year.

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

Nominal GDP:

The Arcadia Entertainment Co.produced 20 000 DVDs of the movie Thor in 2011.Only 4 000 copies remained unsold at the end of 2011.As a result:

Dividing real GDP by the population:

Which item would NOT be included in this year's GDP?

The indirect ownership of physical capital refers to households owning:

Stock in a company is:

If the cost of the market basket in the base year is $1 000 and the cost of the market basket in 2013 is $1 080,the price index for 2013 is 80.

Which item is included in the calculation of GDP?

A household is a person or group of people who share an income.

The base period for the consumer price index is 1982-1984.

Use the following to answer questions: -(Table: Peanut Butter and Jelly)Use Table: Peanut Butter and Jelly.Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly.If 2012 is the base year,what is the value of the price index in 2014?

Which example illustrates an intermediate good?

The largest spending category in GDP is consumption.