Exam 6: Introduction to Macroeconomics and Gross Domestic Product

Consider the following data to answer the next questions: -Although countries C and D have the same level of GDP, country C has a level of per capita GDP that is ________ times that of country D.

GDP is most often measured by:

The difference between nominal GDP and real GDP is:

The best measure of the average living standards of people in the country is:

If nominal GDP changed by 6% and the price level changed by 2%, then real GDP changed by:

Consider the following figure to answer the next questions: -During which year was average income climbing the most rapidly?

If nominal GDP is increasing, which of the following is true?

The investment component of GDP can be broken down into three main categories. Identify these categories and briefly explain what is included in each category.

To evaluate the change in average living standards over time, it is best to use:

A shortcoming of nominal GDP is that:

Nominal GDP increases if:

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 real GDP in 2013?

A company sells 100 boxes of chocolate, yet it only produced 90 boxes of chocolate during the year. Which of the following is true?

Nominal GDP increased from $15.44 trillion to $15.75 trillion, and the price level increased from 116.5 to 122.3. Which of the following is true?

Consider the following data to answer the next questions: -If these are the only five countries in the world, then country B produces _______ of world GDP.

Does the value of cleaning your house count toward the value of GDP?

Consumption is approximately ________ of GDP.

Consider the following data to answer the next questions: -Which two countries have the same average living standard?

Real GDP is GDP adjusted for changes in:

Company X sells paper to company Y for $100,000. Company Y uses the paper to make textbooks, selling them to consumers for $500,000. The total contribution to GDP is: