Exam 6: Introduction to Macroeconomics and Gross Domestic Product

Farmer Bill grows wheat and sells it to the miller for $50,000. The miller turns it into flour and sells it to the bakery for $75,000. The bakery uses the flour in the bread that it sells to people for $90,000. The total contribution to GDP is:

Which of the following is a topic of microeconomics?

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 7 and quarter 8, real GDP grew by what percentage?

Describe three different uses of GDP, or give three different reasons to explain why it might be useful to calculate GDP.

Net exports can be defined as:

Real GDP is equal to:

The phase of the business cycle where the economy is growing faster than usual is called:

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 2012?

In macroeconomics:

An accurate measure of GDP is derived by adding:

The business cycle measures:

GDP is not a good measure of:

Government salaries paid to soldiers in the military are included in the ________ category of GDP.

The investment spending category of GDP does NOT include:

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 2 and quarter 3, real GDP grew by what percentage?

Explain why a country with a lower level of real GDP per capita might have a higher level of well-being in comparison to a country with a higher level of real GDP per capita.

Joe owns a crab shack. When he produces and sells ________ meals in a given day, his income earned will ________.

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

To avoid double-counting when calculating GDP, it is best to:

You bought stock in 2010 for $100 and you sold it in 2012 for $200. You used a broker to sell the stock for you, and he charged you $20. This transaction contributed ________ to GDP.