Question 1

Which of the following represents the largest share of U.S. GDP?

Accepted Answer

A)  services 
B)  agricultural production 
C)  the production of manufactured goods 
D)  the production of physical goods 
E)  the production of capital goods 
A)  services 
B)  agricultural production 
C)  the production of manufactured goods 
D)  the production of physical goods 
E)  the production of capital goods

Question 2

Consider the following figure to answer the next  questions:  
-During which period was the economy in an expansion?

Accepted Answer

A)  2005-2009 
B)  2000-2004 
C)  2009-2013 
D)  2004-2008 
E)  2000-2012 
A)  2005-2009 
B)  2000-2004 
C)  2009-2013 
D)  2004-2008 
E)  2000-2012

Question 3

Which is the largest component of U.S. GDP?

Accepted Answer

A)  consumption 
B)  investment 
C)  government purchases 
D)  exports 
E)  imports 
A)  consumption 
B)  investment 
C)  government purchases 
D)  exports 
E)  imports

Question 4

The four major expenditure categories of GDP are:

Accepted Answer

A)  consumption, imports, exports, and government purchases. 
B)  consumption, government purchases, taxes, and investment. 
C)  consumption, investment, government purchases, and net exports. 
D)  consumption, investment, government purchases, and stocks. 
E)  consumption, investment, taxes, and net exports. 
A)  consumption, imports, exports, and government purchases. 
B)  consumption, government purchases, taxes, and investment. 
C)  consumption, investment, government purchases, and net exports. 
D)  consumption, investment, government purchases, and stocks. 
E)  consumption, investment, taxes, and net exports.

Question 5

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next questions: Assume that the base year is 2012.  
-What was the growth rate of real GDP between the two years?

Accepted Answer

A)  30% 
B)  3% 
C)  2% 
D)  20% 
E)  8.3% 
A)  30% 
B)  3% 
C)  2% 
D)  20% 
E)  8.3%

Question 6

The contraction phase of a business cycle is best described as:

Accepted Answer

A)  the time elapsed from a trough to a peak. 
B)  the time elapsed from a peak to a trough. 
C)  the time elapsed from a peak to a peak. 
D)  the time elapsed from a trough to a trough. 
E)  the time spent producing below the long-run trend of GDP. 
A)  the time elapsed from a trough to a peak. 
B)  the time elapsed from a peak to a trough. 
C)  the time elapsed from a peak to a peak. 
D)  the time elapsed from a trough to a trough. 
E)  the time spent producing below the long-run trend of GDP.

Question 7

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next  questions: Assume that the base year is 2012.  
-What was the nominal GDP in 2013?

Accepted Answer

A)  $5,400 
B)  $6,300 
C)  $6,450 
D)  $1,700 
E)  $13,600 
A)  $5,400 
B)  $6,300 
C)  $6,450 
D)  $1,700 
E)  $13,600

Question 8

Ford produces 100,000 cars this year and only sells 95,000. The 5,000 cars that are not sold _______ listed in ________ category of GDP.

Accepted Answer

A)  are not; any 
B)  are; the consumption 
C)  are; the investment 
D)  are; the unsold good 
E)  are; the excess production 
A)  are not; any 
B)  are; the consumption 
C)  are; the investment 
D)  are; the unsold good 
E)  are; the excess production

Question 9

The GDP deflator is a measure of:

Accepted Answer

A)  price level. 
B)  the growth rate of nominal GDP. 
C)  the growth rate of real GDP. 
D)  the growth rate of long-run trend GDP. 
E)  how much the economy contracts during a recession. 
A)  price level. 
B)  the growth rate of nominal GDP. 
C)  the growth rate of real GDP. 
D)  the growth rate of long-run trend GDP. 
E)  how much the economy contracts during a recession.

Question 10

Nominal GDP increased from $15.76 trillion to $16.39 trillion, and the price level increased from 112.6 to 114.8. Which of the following is true?

Accepted Answer

A)  Output grew faster than the price level. 
B)  Output grew slower than the price level. 
C)  Real GDP grew faster than nominal GDP. 
D)  Output grew at the same rate as the price level. 
E)  Real GDP grew at the same rate as nominal GDP. 
A)  Output grew faster than the price level. 
B)  Output grew slower than the price level. 
C)  Real GDP grew faster than nominal GDP. 
D)  Output grew at the same rate as the price level. 
E)  Real GDP grew at the same rate as nominal GDP.

Question 11

Which of the following is included in the government purchases category of GDP?

Accepted Answer

A)  Social Security payments 
B)  welfare payments 
C)  payments to people in the military 
D)  interest on the national debt 
E)  payments to unemployed workers 
A)  Social Security payments 
B)  welfare payments 
C)  payments to people in the military 
D)  interest on the national debt 
E)  payments to unemployed workers

Question 12

Consider the following data that identifies real GDP in comparison to the long-run trend of real GDP to answer the next  questions:  
-Between quarter 10 and quarter 11, real GDP grew by what percentage?

Accepted Answer

A)  6% 
B)  3% 
C)  4% 
D)  5% 
E)  -5% 
A)  6% 
B)  3% 
C)  4% 
D)  5% 
E)  -5%

Question 13

Assuming the price level increased, if real GDP is less than nominal GDP for a given year, then:

Accepted Answer

A)  the growth in output was less than the growth in the price level. 
B)  the growth in output was greater than the growth in the price level. 
C)  the growth in output was equal to the growth in the price level. 
D)  the given year is before the base year. 
E)  the given year is after the base year. 
A)  the growth in output was less than the growth in the price level. 
B)  the growth in output was greater than the growth in the price level. 
C)  the growth in output was equal to the growth in the price level. 
D)  the given year is before the base year. 
E)  the given year is after the base year.

Question 14

A student had the following expenditures last month: rent-$500, food expense-$200, cost of a used textbook from the bookstore-$50, cost of new shoes-$100, and cost of gas for the car-$100. Which of these items are included in GDP?

Accepted Answer

The rent is included because the landlor

Question 15

Real GDP is GDP measured in:

Accepted Answer

A)  current prices. 
B)  base year prices. 
C)  average prices. 
D)  marginal prices. 
E)  nominal prices. 
A)  current prices. 
B)  base year prices. 
C)  average prices. 
D)  marginal prices. 
E)  nominal prices.

Question 16

Draw a graph to illustrate the phases of the business cycle. Be sure to identify the length of a contraction and an expansion. Identify a peak and a trough.

Accepted Answer

The accompanying figure shows a typical

Question 17

Between two given years, if real GDP and nominal GDP grow at the same rate, then:

Accepted Answer

A)  the price level increased. 
B)  prices must have remained constant between the two years. 
C)  quantities must have remained constant between the two years. 
D)  prices and quantities must have remained constant between the two years. 
E)  prices and quantities must have grown at the same rate between the two years. 
A)  the price level increased. 
B)  prices must have remained constant between the two years. 
C)  quantities must have remained constant between the two years. 
D)  prices and quantities must have remained constant between the two years. 
E)  prices and quantities must have grown at the same rate between the two years.

Question 18

A computer company builds a new factory. This is included in the ________ category of GDP.

Accepted Answer

A)  consumption 
B)  investment 
C)  government purchases 
D)  net export 
E)  services 
A)  consumption 
B)  investment 
C)  government purchases 
D)  net export 
E)  services

Question 19

Macroeconomics is the study of:

Accepted Answer

A)  individual markets. 
B)  the behavior of the firm. 
C)  the behavior of the consumer. 
D)  changes in national income. 
E)  changes in commodity prices. 
A)  individual markets. 
B)  the behavior of the firm. 
C)  the behavior of the consumer. 
D)  changes in national income. 
E)  changes in commodity prices.

Question 20

To determine living standards for the average person, we calculate:

Accepted Answer

A)  GDP. 
B)  per capita GDP. 
C)  the average level of prices in the country. 
D)  the length of time the average person is unemployed. 
E)  the growth rate of GDP. 
A)  GDP. 
B)  per capita GDP. 
C)  the average level of prices in the country. 
D)  the length of time the average person is unemployed. 
E)  the growth rate of GDP.

Which of the following represents the largest share of U.S. GDP?

Consider the following figure to answer the next questions: -During which period was the economy in an expansion?

Which is the largest component of U.S. GDP?

The four major expenditure categories of GDP are:

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next questions: Assume that the base year is 2012. -What was the growth rate of real GDP between the two years?

The contraction phase of a business cycle is best described as:

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next questions: Assume that the base year is 2012. -What was the nominal GDP in 2013?

Ford produces 100,000 cars this year and only sells 95,000. The 5,000 cars that are not sold _ listed in __ category of GDP.

The GDP deflator is a measure of:

Nominal GDP increased from $15.76 trillion to $16.39 trillion, and the price level increased from 112.6 to 114.8. Which of the following is true?

Which of the following is included in the government purchases category of GDP?

Consider the following data that identifies real GDP in comparison to the long-run trend of real GDP to answer the next questions: -Between quarter 10 and quarter 11, real GDP grew by what percentage?

Assuming the price level increased, if real GDP is less than nominal GDP for a given year, then:

A student had the following expenditures last month: rent-$500, food expense-$200, cost of a used textbook from the bookstore-$50, cost of new shoes-$100, and cost of gas for the car-$100. Which of these items are included in GDP?

Real GDP is GDP measured in:

Draw a graph to illustrate the phases of the business cycle. Be sure to identify the length of a contraction and an expansion. Identify a peak and a trough.

Between two given years, if real GDP and nominal GDP grow at the same rate, then:

A computer company builds a new factory. This is included in the ________ category of GDP.

Macroeconomics is the study of:

To determine living standards for the average person, we calculate:

The Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Price Controls

The Efficiency of Markets and the Costs of Taxation

Unemployment

The Price Level and Inflation

Savings, Interest Rates, and the Market for Loanable Funds

Financial Markets and Securities

Economic Growth and the Wealth of Nations

Growth Theory

The Aggregate Demandaggregate Supply Model

The Great Recession, the Great Depression, and Great Macroeconomic Debates

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

Monetary Policy

International Trade

International Finance

Filters

Exam 6: Introduction to Macroeconomics and Gross Domestic Product

Which of the following represents the largest share of U.S. GDP?

Consider the following figure to answer the next questions: -During which period was the economy in an expansion?

Which is the largest component of U.S. GDP?

The four major expenditure categories of GDP are:

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next questions: Assume that the base year is 2012. -What was the growth rate of real GDP between the two years?

The contraction phase of a business cycle is best described as:

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next questions: Assume that the base year is 2012. -What was the nominal GDP in 2013?

Ford produces 100,000 cars this year and only sells 95,000. The 5,000 cars that are not sold _______ listed in ________ category of GDP.

The GDP deflator is a measure of:

Nominal GDP increased from $15.76 trillion to $16.39 trillion, and the price level increased from 112.6 to 114.8. Which of the following is true?

Which of the following is included in the government purchases category of GDP?

Consider the following data that identifies real GDP in comparison to the long-run trend of real GDP to answer the next questions: -Between quarter 10 and quarter 11, real GDP grew by what percentage?

Assuming the price level increased, if real GDP is less than nominal GDP for a given year, then:

A student had the following expenditures last month: rent-$500, food expense-$200, cost of a used textbook from the bookstore-$50, cost of new shoes-$100, and cost of gas for the car-$100. Which of these items are included in GDP?

Real GDP is GDP measured in:

Draw a graph to illustrate the phases of the business cycle. Be sure to identify the length of a contraction and an expansion. Identify a peak and a trough.

Between two given years, if real GDP and nominal GDP grow at the same rate, then:

A computer company builds a new factory. This is included in the ________ category of GDP.

Macroeconomics is the study of:

To determine living standards for the average person, we calculate:

The Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Price Controls

The Efficiency of Markets and the Costs of Taxation

Unemployment

The Price Level and Inflation

Savings, Interest Rates, and the Market for Loanable Funds

Financial Markets and Securities

Economic Growth and the Wealth of Nations

Growth Theory

The Aggregate Demandaggregate Supply Model

The Great Recession, the Great Depression, and Great Macroeconomic Debates

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

Monetary Policy

International Trade

International Finance

Filters

Ford produces 100,000 cars this year and only sells 95,000. The 5,000 cars that are not sold _ listed in __ category of GDP.