Exam 21: Gdp and the Consumer Price Index

Use the following to answer questions Figure: Expanded Circular-Flow Model -(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. The total flow of funds into and out of the rest of the world is:

GDP excludes all of the following EXCEPT:

If real GDP rises while nominal GDP falls, then prices on average have:

The value of all of the following goods EXCEPT _____ is included in the calculation of aggregate output.

Use the following to answer questions Figure: Circular-Flow Model -(Figure: Circular-Flow Model) Look at the figure 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, which of the following is likely to happen?

Real GDP tends to understate our economic well-being because it:

Use the following to answer questions Scenario: Real GDP 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. -(Scenario: Real GDP) Look at the scenario Real GDP. The value of nominal GDP in years 1 and 2 respectively is:

Which of the following would NOT be included in this year's GDP?

In the circular-flow diagram, firms:

Investment spending is spending on:

Suppose that Mr. Green Jeans sells $5,000 of wheat to Big Ben Bakery. Big Ben uses the wheat to make flour and then hamburger buns, which it sells to Hamburger Heaven for $11,000. Hamburger Heaven also buys $20,000 of beef from a rancher. Hamburger Heaven uses the beef and buns to make 10,000 hamburgers, which are sold for $5 each. How much do these transactions add to GDP?

Value added in national income accounts refers to the:

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

A bond is:

The inflation-adjusted measure of aggregate output typically used by economists is called:

The most important use of GDP is as a measure of:

The best available common measure of a nation's standard of living is:

The calculation of GDP includes the value of all of the following goods EXCEPT:

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

Investment spending is spending on: