Exam 2: Measuring the Macroeconomy

Nominal gross domestic product is defined as:

In 2012, investment expenditures accounted for about ________ of total GDP.

In 2012, U.S. national output was equal to about:

If NGDP is nominal GDP and RGDP is real GDP, which of the following can be used to calculate inflation?

Refer to the following table when answering Table 2.2: U.S. 2011-2012 Domestic Income ($ billions) 2011 2012 Compensation of employees, paid 8,303 8,600 Wage and salary accruals 6,669 6,914 Supplements to wages and salaries 1,634 1,687 Taxes on production and imports 1,098 1,130 Subsidies 62 61 Net operating surplus 3,768 3,963 Private enterprises 3,794 3,997 Current surplus of government enterprises -27 -34 Depreciati on of fixed capital 1,937 2,012 Private 1,587 1,648 Government 349 364 -Consider Table 2.2, National Income Accounts for 2011 and 2012. From this data, total GDP in 2012 was about ________ billion.

Who led the team that created the original National Income and Product Accounts in the 1930s?

According to the expenditure approach, if Y is GDP, C is consumption, I is investment, G is government purchases, and NX is net exports, which of the following is the national income identity?

In 2012, government expenditures accounted for about ________ of total GDP.

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 2011 is:

If the percent change in real GDP is found to be 4 percent using the Laspeyres index and 3 percent using the Paasche index, the chain-weighted price index will give us a growth rate of 3.5 percent.

The value added for a good produced is equal to the value of the firm's output plus the value of the intermediate goods used to produce that output.

To get an accurate view of how GDPs differ across countries, we simply need to convert all countries' GDPs into dollars using the prevailing exchange rate.

Refer to the following table when answering . In this economy, only two goods are produced: video games and pistachios. Table 2.3: National Income Accounting 2017 2018 Quantity of pistachios 1,000 1,100 Quantity of video games 500 500 Price of pistachios \ 1.00 \ 1.50 Price of video games \ 15.00 \ 14.75 -Consider Table 2.3. Using the Laspeyres index, the real GDP in 2017 is:

In the income approach to GDP, fixed capital depreciation is defined as the after-tax profits of a firm.

Using the expenditure approach, consumption expenditures include household purchases of:

According to the income approach to GDP, the largest portion of GDP is net operating surplus.

If we want to calculate the U.S. real GDP in Mexican pesos, we would use the following:

Refer to the following table when answering . In this economy, only two goods are produced: video games and pistachios. Table 2.3: National Income Accounting 2017 2018 Quantity of pistachios 1,000 1,100 Quantity of video games 500 500 Price of pistachios \ 1.00 \ 1.50 Price of video games \ 15.00 \ 14.75 -Consider Table 2.3. Using the Paasche index, the real GDP in 2018 is:

Suppose we calculate the percent change in real GDP from year 1 to year 2 using both the Laspeyres and the Paasche indices. With the Laspeyres index we get 12 percent and with the Paasche index we get 9 percent. The chain-weighted growth of real GDP is:

Define E = $/£ as the dollar/pound exchange rate and NGDP_UK as the United Kingdom's nominal GDP; then NGDP ${ } ^ { U S . }$ UK , the United Kingdom's nominal GDP in dollars, is given by: