Question 1

Saving rates tend to ________ during boom times and ________ during recession periods.

Accepted Answer

A)  rise; rise 
B)  rise; fall 
C)  fall; rise 
D)  fall; fall 
A)  rise; rise 
B)  rise; fall 
C)  fall; rise 
D)  fall; fall

Question 2

In 2016 the change in business inventories is -$30 billion and GDP is $160 billion. Final sales in 2016 are

Accepted Answer

A)  $100 billion. 
B)  $130 billion. 
C)  $160 billion. 
D)  $190 billion. 
A)  $100 billion. 
B)  $130 billion. 
C)  $160 billion. 
D)  $190 billion.

Question 3

If disposable personal income is $400 billion and personal saving is $8 billion, the personal saving rate is

Accepted Answer

A)  1.5%. 
B)  2%. 
C)  5%. 
D)  12%. 
A)  1.5%. 
B)  2%. 
C)  5%. 
D)  12%.

Question 4

Depreciation is

Accepted Answer

A)  the decrease in the overall price level. 
B)  the additional capital stock in a year. 
C)  the amount of used up machinery in a year. 
D)  the amount of decline in business inventories. 
A)  the decrease in the overall price level. 
B)  the additional capital stock in a year. 
C)  the amount of used up machinery in a year. 
D)  the amount of decline in business inventories.

Question 5

If nominal GDP is $18 trillion and real GDP is $3 trillion, the GDP deflator is

Accepted Answer

A)  6. 
B)  21. 
C)  54. 
D)  600. 
A)  6. 
B)  21. 
C)  54. 
D)  600.

Question 6

If real GDP in 2016 using 2015 prices is equal to the nominal GDP of 2016, then

Accepted Answer

A)  prices in 2016 are lower than prices in the base year. 
B)  the price level has not changed. 
C)  prices in 2016 are higher than prices in the base year. 
D)  real GDP in 2016 is larger than real GDP in 2015. 
A)  prices in 2016 are lower than prices in the base year. 
B)  the price level has not changed. 
C)  prices in 2016 are higher than prices in the base year. 
D)  real GDP in 2016 is larger than real GDP in 2015.

Question 7

Proprietors' income includes all of the following except

Accepted Answer

A)  the income of unincorporated businesses. 
B)  the income of all businesses-incorporated and unincorporated. 
C)  the income of sole proprietorships. 
D)  the income of partnerships. 
A)  the income of unincorporated businesses. 
B)  the income of all businesses-incorporated and unincorporated. 
C)  the income of sole proprietorships. 
D)  the income of partnerships.

Question 8

Dairy Queen opens a branch in Estonia. The sales of the restaurant enter the U.S. GDP and the Estonian GNP.

Accepted Answer

A) True 
 B)False

Question 9

If net investment in 2017 is $225 billion and gross investment in 2017 is $350 billion, depreciation in 2017 is

Accepted Answer

A)  $125 billion. 
B)  $175 billion. 
C)  $225 billion. 
D)  $575 billion. 
A)  $125 billion. 
B)  $175 billion. 
C)  $225 billion. 
D)  $575 billion.

Question 10

All used goods are considered nondurable goods.

Accepted Answer

A) True 
 B)False

Question 11

In 2016, there was no change in inventories, which implies that GDP was ________ in 2016.

Accepted Answer

A)  exactly equal to final sales 
B)  greater than final sales 
C)  less than final sales 
D)  zero 
A)  exactly equal to final sales 
B)  greater than final sales 
C)  less than final sales 
D)  zero

Question 12

Refer to the information provided in Table 6.1 below to answer the questions that follow.
Table 6.1  
-Refer to Table 6.1. The value for gross private domestic investment in billions of dollars is

Accepted Answer

A)  300. 
B)  375. 
C)  425. 
D)  450. 
A)  300. 
B)  375. 
C)  425. 
D)  450.

Question 13

Transfer payments are subtracted from national income to get to personal income.

Accepted Answer

A) True 
 B)False

Question 14

Refer to the information provided in Table 6.3 below to answer the questions that follow.
Table 6.3  
-Refer to Table 6.3. The value for gross domestic product in billions of dollars is

Accepted Answer

A)  485. 
B)  680. 
C)  685. 
D)  710. 
A)  485. 
B)  680. 
C)  685. 
D)  710.

Question 15

Refer to the information provided in Table 6.8 below to answer the questions that follow.
Table 6.8  
-Refer to Table 6.8. The value for GDP in billions of dollars is

Accepted Answer

A)  950. 
B)  1,030. 
C)  1,050. 
D)  1,110. 
A)  950. 
B)  1,030. 
C)  1,050. 
D)  1,110.

Question 16

When calculating GDP, ________ are added and ________ are subtracted.

Accepted Answer

A)  exports; net exports 
B)  imports; exports 
C)  exports; imports 
D)  imports; net exports 
A)  exports; net exports 
B)  imports; exports 
C)  exports; imports 
D)  imports; net exports

Question 17

Refer to the information provided in Table 6.9 below to answer the questions that follow.
Table 6.9  
-Refer to Table 6.9. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's inflation rate between year 1 and year 2 is

Accepted Answer

A)  -6.1%. 
B)  -5.5%. 
C)  6.5%. 
D)  79%. 
A)  -6.1%. 
B)  -5.5%. 
C)  6.5%. 
D)  79%.

Question 18

Refer to the information provided in Table 6.9 below to answer the questions that follow.
Table 6.9  
-Refer to Table 6.9. Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 1 is

Accepted Answer

A)  $140. 
B)  $160. 
C)  $180. 
D)  $200. 
A)  $140. 
B)  $160. 
C)  $180. 
D)  $200.

Question 19

Imports equal

Accepted Answer

A)  exports - net exports. 
B)  net exports/exports. 
C)  1 - exports. 
D)  exports + (exports - imports). 
A)  exports - net exports. 
B)  net exports/exports. 
C)  1 - exports. 
D)  exports + (exports - imports).

Question 20

If in the same period output doubles and the price level doubles, nominal GDP doubles.

Accepted Answer

A) True 
 B)False

Exam 6: Measuring National Output and National Income

Saving rates tend to ________ during boom times and ________ during recession periods.

In 2016 the change in business inventories is -$30 billion and GDP is $160 billion. Final sales in 2016 are

If disposable personal income is $400 billion and personal saving is $8 billion, the personal saving rate is

Depreciation is

If nominal GDP is $18 trillion and real GDP is $3 trillion, the GDP deflator is

If real GDP in 2016 using 2015 prices is equal to the nominal GDP of 2016, then

Proprietors' income includes all of the following except

Dairy Queen opens a branch in Estonia. The sales of the restaurant enter the U.S. GDP and the Estonian GNP.

If net investment in 2017 is $225 billion and gross investment in 2017 is $350 billion, depreciation in 2017 is

All used goods are considered nondurable goods.

In 2016, there was no change in inventories, which implies that GDP was ________ in 2016.

Refer to the information provided in Table 6.1 below to answer the questions that follow. Table 6.1 -Refer to Table 6.1. The value for gross private domestic investment in billions of dollars is

Transfer payments are subtracted from national income to get to personal income.

Refer to the information provided in Table 6.3 below to answer the questions that follow. Table 6.3 -Refer to Table 6.3. The value for gross domestic product in billions of dollars is

Refer to the information provided in Table 6.8 below to answer the questions that follow. Table 6.8 -Refer to Table 6.8. The value for GDP in billions of dollars is

When calculating GDP, ________ are added and ________ are subtracted.

Refer to the information provided in Table 6.9 below to answer the questions that follow. Table 6.9 -Refer to Table 6.9. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's inflation rate between year 1 and year 2 is

Refer to the information provided in Table 6.9 below to answer the questions that follow. Table 6.9 -Refer to Table 6.9. Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 1 is

Imports equal

If in the same period output doubles and the price level doubles, nominal GDP doubles.

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Saving rates tend to during boom times and during recession periods.

When calculating GDP, are added and are subtracted.