Exam 2: Measuring the Macroeconomy

Which of the following counts toward changes in the current GDP?

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 2011 was about ________ billion.

If the nominal GDP rises by 3 percent and the price level rises by 5 percent, then the real GDP ________ by ________.

Since about 1970, ________ income share of GDP has been ________.

Which of the following is/are NOT included in the expenditure approach to national income accounting?

If we want to calculate the Mexican real GDP in U.S. dollars but adjusted for prices, we use the following:

If we calculate the real GDP using the ________ index, we use the ________ period's prices.

Which of the following is NOT discussed in Jones and Klenow's alternative measure of economic welfare?

When you buy a car from your brother, which he bought new in 2000, the purchase adds to current GDP.

An economy's ________ is equal to its ________.

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. Household consumption as a share of GDP ________ and investment's share ________ over 2011-2012.

In 2012, consumption expenditures accounted for over 70 percent of the total GDP.

Which measure of overall economic activity was not available in the 1930s?

You are a staff economist for your local bank and the bank manager asks you to calculate whether Qatar (QAT), Luxembourg (LUX), or the United States (USA) is biggest in per capita terms when adjusted for price differences. She gives you the following data table and asks you to fill in the missing values. Population (column A) and GDP (D) are in millions. GDP in column D is in domestic currency, the euro for Luxembourg, the Qatari rial for Qatar, and the U.S. dollar for the United States. The exchange rate (B) is units of foreign currency per U.S. $1, and P_US /P_i is the relative price level for the United States and the other countries. Table GDP, Population, and Exchange Rate Data in 2010 exchange GDP per capita GDP per capita PPP per capita pop rate pus/pi (mollion) national currency GDP( \s ) GDP( \s ) (A) () () () () () () LUX 0.498 0.76 0.87 36,561 - - - QAT 0.841 3.64 1.01 470,422 - - - 310.23 1.00 1.00 14,584,731 - - -

According to the income approach to GDP, the largest percentage of GDP comes from:

If the percent change in prices is greater than the percent change in the nominal GDP, the real GDP rises.

Nominal GDP is the ________ of all goods and services produced in a period of time using ________ prices.

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

If you own your own home, National Accounts uses ________ to measure the value of your home.

In 2012, the U.S. GDP was about ________, and ________ was the largest share.