Exam 2: Measuring the Macroeconomy

GDP measures all economic activity.

When calculating the real GDP using the Paasche index, we use the final period's prices.

The chain-weighted measure of real GDP uses prices from:

When the city of Los Angeles hires more police officers, ________ may rise, but it may be due to the ________ associated with crime.

Refer to the following table when answering Table 2.4: U.S. and Eurozone Nominal GDP in 2011 2011 Eurozone nominal GDP ( billions) 13,144 U.S. nominal GDP (\ billions) \ 15,100 Dollar/euro exchange rate \ 1.28 /1 1 PEz /Pus 0.96 -Consider the data in Table 2.4. When we convert the Eurozone's nominal GDP into dollars and adjust for price differences, the U.S. economy is about ________ times ________ than the Eurozone economy.

Refer to the following table when answering Table 2.1: U.S. 2011-2012 Expenditures ($ billions) 2011 2012 Personal consumption expenditures 10,729 11,120 Goods 3,625 3,783 Services 7,104 7,337 Gross private domestic investment 1,855 2,062 Fixed investment 1,818 2,004 Change in private inventories 37 58 Net exports of goods and services -568 -560 Exports 2,094 2,184 Imports 2,662 2,744 Government expenditures 3,060 3,063 Federal 1,222 1,214 State and local 1,838 1,849 -Consider Table 2.1, which tabulates GDP for 2011-2012. Total GDP in 2012 is:

The largest GDP expenditure share historically has been government expenditure.

According to the expenditure approach to GDP, investment expenditures include purchases of residential housing.

Refer to the following table when answering Table 2.4: U.S. and Eurozone Nominal GDP in 2011 2011 Eurozone nominal GDP ( billions) 13,144 U.S. nominal GDP (\ billions) \ 15,100 Dollar/euro exchange rate \ 1.28 /1 1 PEz /Pus 0.96 -Consider the data in Table 2.4. The value of Eurozone nominal GDP in U.S. dollars is:

According to the expenditure approach to GDP, household expenditures include purchases of residential housing.

When you cook yourself dinner, you are contributing to economic activity, but it is not measured in GDP.

Refer to the following table when answering Table 2.4: U.S. and Eurozone Nominal GDP in 2011 2011 Eurozone nominal GDP ( billions) 13,144 U.S. nominal GDP (\ billions) \ 15,100 Dollar/euro exchange rate \ 1.28 /1 1 PEz /Pus 0.96 -Consider the data in Table 2.4. When we convert the Eurozone's nominal GDP into dollars but do NOT adjust for price differences, the U.S. economy is about ________ times ________ than the Eurozone economy.

The largest share of household consumption expenditures is durable goods.

Consider the data in the following table, which represents the total production of the country Tucommodatia. They produce only consumer goods. (a) Calculate real GDP for all three years, using 2017 as the base year. 2017 2018 2019 Quantity of Y 100 105 103 Quantity of X 5 3 4 Price of Y \ 5 \ 5 \ 5 Price of X \ 100 \ 105 \ 110 (b) Calculate the Consumer Price Index (CPI), using 2017 as the base year. Identify whether there was inflation from the previous year.

Refer to the following table when answering Table 2.4: U.S. and Eurozone Nominal GDP in 2011 2011 Eurozone nominal GDP ( billions) 13,144 U.S. nominal GDP (\ billions) \ 15,100 Dollar/euro exchange rate \ 1.28 /1 1 PEz /Pus 0.96 -Consider the data in Table 2.4. The value of the Eurozone nominal GDP in U.S. dollars adjusted for price differences is:

According to the text, the gains in GDP's consumption share has:

According to the income approach to GDP, the largest portion of GDP is compensation to employees.

Refer to the following table when answering Table 2.1: U.S. 2011-2012 Expenditures ($ billions) 2011 2012 Personal consumption expenditures 10,729 11,120 Goods 3,625 3,783 Services 7,104 7,337 Gross private domestic investment 1,855 2,062 Fixed investment 1,818 2,004 Change in private inventories 37 58 Net exports of goods and services -568 -560 Exports 2,094 2,184 Imports 2,662 2,744 Government expenditures 3,060 3,063 Federal 1,222 1,214 State and local 1,838 1,849 -Consider Table 2.1, which tabulates GDP for 2011-2012. The federal government's share of total GDP in 2011 was about:

Real GDP is given by ________, where the price level is the ________.

What are the components that make up the income approach to calculating GDP? What are the components that make up the expenditure approach to calculating GDP?