Question 1

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

Accepted Answer

A)  inequality 
B)  leisure 
C)  life expectancy 
D)  child mortality rates 
E)  consumption share of GDP 
A)  inequality 
B)  leisure 
C)  life expectancy 
D)  child mortality rates 
E)  consumption share of GDP D

Question 2

Suppose we calculate the percent change in real GDP from year 1 to year 2 using both the Laspeyres and the Paasche indices. With the Laspeyres index we get 12 percent and with the Paasche index we get 9 percent. The chain-weighted growth of real GDP is ________ percent.

Accepted Answer

A)  1.5 
B)  9.75 
C)  1.33 
D)  9.5 
E)  10.5 
A)  1.5 
B)  9.75 
C)  1.33 
D)  9.5 
E)  10.5 E

Question 3

Prior to the late 1970s, the United States ________ about as much as it ________.

Accepted Answer

A)  exported; consumed 
B)  exported; imported 
C)  imported; consumed 
D)  invested; exported 
E)  imported; invested 
A)  exported; consumed 
B)  exported; imported 
C)  imported; consumed 
D)  invested; exported 
E)  imported; invested B

Question 4

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

Accepted Answer

A)  indirect business taxes. 
B)  firm profits. 
C)  compensation to employees. 
D)  depreciation of fixed capital. 
E)  None of these answers is correct. 
A)  indirect business taxes. 
B)  firm profits. 
C)  compensation to employees. 
D)  depreciation of fixed capital. 
E)  None of these answers is correct.

Question 5

Using the expenditure approach, government expenditures include:

Accepted Answer

A)  defense and nondefense federal, state, and local government expenditures. 
B)  only nondefense federal government expenditures. 
C)  federal government expenditures and transfer payments. 
D)  only state and local government expenditures. 
E)  residential investment and state and local government expenditures. 
A)  defense and nondefense federal, state, and local government expenditures. 
B)  only nondefense federal government expenditures. 
C)  federal government expenditures and transfer payments. 
D)  only state and local government expenditures. 
E)  residential investment and state and local government expenditures.

Question 6

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

Accepted Answer

A)  transfer payments 
B)  taxes 
C)  Social Security 
D)  changes in stock prices 
E)  None of these answers is correct. 
A)  transfer payments 
B)  taxes 
C)  Social Security 
D)  changes in stock prices 
E)  None of these answers is correct.

Question 7

Refer to the following table when answering the following questions.
Table 2.1: U.S. 2010 and 2015 Expenditures ($ billions)  
-Consider Table 2.1. The federal government's share of total GDP in 2010 was about ________ percent, and in 2015 it was ________ percent.

Accepted Answer

A)  12; 11 
B)  31; 29 
C)  33; 34 
D)  9; 7 
E)  21; 18 
A)  12; 11 
B)  31; 29 
C)  33; 34 
D)  9; 7 
E)  21; 18

Question 8

Refer to the following table when answering the following questions.
Table 2.4: U.S. and Eurozone (18 Economies) Nominal GDP in 2015  
-Consider Table 2.4. When we convert the eurozone's nominal GDP into dollars but do not adjust for price differences, the U.S. economy is about ________ the eurozone economy.

Accepted Answer

A)  1.9 times the size of 
B)  the same size as 
C)  0.8 times the size of 
D)  1.6 times the size of 
E)  1.7 times the size of 
A)  1.9 times the size of 
B)  the same size as 
C)  0.8 times the size of 
D)  1.6 times the size of 
E)  1.7 times the size of

Question 9

Using the expenditure approach, consumption expenditures include household purchases of:

Accepted Answer

A)  durable and nondurable goods and services. 
B)  durable and nondurable goods. 
C)  durable and nondurable goods and taxes. 
D)  durable and nondurable goods and residences. 
E)  nondurable goods. 
A)  durable and nondurable goods and services. 
B)  durable and nondurable goods. 
C)  durable and nondurable goods and taxes. 
D)  durable and nondurable goods and residences. 
E)  nondurable goods.

Question 10

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

Accepted Answer

A)  Laspeyres; final 
B)  Paasche; final 
C)  Paasche; initial 
D)  chain-weighted; current 
E)  chain-weighted; final 
A)  Laspeyres; final 
B)  Paasche; final 
C)  Paasche; initial 
D)  chain-weighted; current 
E)  chain-weighted; final

Question 11

GDP often is used as a "measure" of economic welfare; it includes all factors that contribute to economic well-being.

Accepted Answer

A) True 
 B)False

Question 12

Refer to the following table when answering the following questions. In this economy, only two goods are produced: video games and pistachios.
Table 2.3: National Income Accounting  
-Consider Table 2.3. Using the Laspeyres index, inflation between 2017 and 2018 was about:

Accepted Answer

A)  0 percent. 
B)  5 percent. 
C)  1 percent. 
D)  6 percent. 
E)  Not enough information is given. 
A)  0 percent. 
B)  5 percent. 
C)  1 percent. 
D)  6 percent. 
E)  Not enough information is given.

Question 13

The largest share of household consumption expenditures is durable goods.

Accepted Answer

A) True 
 B)False

Question 14

The difference between economic profits and normal profits is that:

Accepted Answer

A)  normal profits are earnings based on the normal competitive payments to the factors used in production; economic profits are the above-normal returns associated with prices that exceed competitive prices. 
B)  economic profits are earnings based on the normal competitive payments to the factors used in production; normal profits are the above-normal returns associated with prices that exceed competitive prices. 
C)  normal profits are earnings based on the normal competitive payments to the factors used in production; economic profits are the above-normal returns associated with prices that exceed monopolistic prices. 
D)  economic profits are earnings based on the noncompetitive payments to the factors used in production; normal profits are the above-normal returns associated with prices that exceed competitive prices. 
E)  None of these answers is correct. 
A)  normal profits are earnings based on the normal competitive payments to the factors used in production; economic profits are the above-normal returns associated with prices that exceed competitive prices. 
B)  economic profits are earnings based on the normal competitive payments to the factors used in production; normal profits are the above-normal returns associated with prices that exceed competitive prices. 
C)  normal profits are earnings based on the normal competitive payments to the factors used in production; economic profits are the above-normal returns associated with prices that exceed monopolistic prices. 
D)  economic profits are earnings based on the noncompetitive payments to the factors used in production; normal profits are the above-normal returns associated with prices that exceed competitive prices. 
E)  None of these answers is correct.

Question 15

U.S. expenditure shares by households, firms, and the government were relatively ________ except during ________.

Accepted Answer

A)  constant; the 1970s 
B)  variable; the Great Depression 
C)  constant; World War II 
D)  constant; the Vietnam War 
E)  variable; the 1990s 
A)  constant; the 1970s 
B)  variable; the Great Depression 
C)  constant; World War II 
D)  constant; the Vietnam War 
E)  variable; the 1990s

Question 16

Using the expenditure approach to national income accounting, when discussing government expenditures, do we include transfer payments? Why or why not?

Accepted Answer

No. The expenditure approach concentrate

Question 17

The chain-weighted measure of real GDP uses prices from a:

Accepted Answer

A)  constant base year. 
B)  constantly changing base year. 
C)  base year that changes every five years. 
D)  base year that changes every 10 years. 
E)  None of these answers is correct. 
A)  constant base year. 
B)  constantly changing base year. 
C)  base year that changes every five years. 
D)  base year that changes every 10 years. 
E)  None of these answers is correct.

Question 18

The National Income and Product Accounts allows us to relate ________ to ________ to ________.

Accepted Answer

A)  household income; government income; firm income 
B)  total output; total spending; inflation 
C)  total output; inflation; total income 
D)  household income; household expenditure; total output 
E)  total output; total spending; total income 
A)  household income; government income; firm income 
B)  total output; total spending; inflation 
C)  total output; inflation; total income 
D)  household income; household expenditure; total output 
E)  total output; total spending; total income

Question 19

If NGDP is nominal GDP and RGDP is real GDP, which of the following can be used to calculate inflation?

Accepted Answer

A)  percent change in NGDP + percent change in RGDP 
B)  percent change in NGDP - percent change in RGDP 
C)  percent change in NGDP ｴ percent change in RGDP 
D)  percent change in RGDP + percent change in NGDP 
E)  percent change in RGDP -percent change in NGDP 
A)  percent change in NGDP + percent change in RGDP 
B)  percent change in NGDP - percent change in RGDP 
C)  percent change in NGDP ｴ percent change in RGDP 
D)  percent change in RGDP + percent change in NGDP 
E)  percent change in RGDP -percent change in NGDP

Question 20

In 2015, the U.S. GDP was about ________, and ________ was/were the largest share.

Accepted Answer

A)  $5 trillion; net exports 
B)  $22.5 billion; government expenditures 
C)  $10.5 trillion; investment 
D)  $13.6 billion; consumption 
E)  $17.9 trillion; consumption 
A)  $5 trillion; net exports 
B)  $22.5 billion; government expenditures 
C)  $10.5 trillion; investment 
D)  $13.6 billion; consumption 
E)  $17.9 trillion; consumption

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

Suppose we calculate the percent change in real GDP from year 1 to year 2 using both the Laspeyres and the Paasche indices. With the Laspeyres index we get 12 percent and with the Paasche index we get 9 percent. The chain-weighted growth of real GDP is ________ percent.

Prior to the late 1970s, the United States about as much as it .

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

Using the expenditure approach, government expenditures include:

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

Refer to the following table when answering the following questions. Table 2.1: U.S. 2010 and 2015 Expenditures ($ billions) -Consider Table 2.1. The federal government's share of total GDP in 2010 was about percent, and in 2015 it was percent.

Using the expenditure approach, consumption expenditures include household purchases of:

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

GDP often is used as a "measure" of economic welfare; it includes all factors that contribute to economic well-being.

Refer to the following table when answering the following questions. In this economy, only two goods are produced: video games and pistachios. Table 2.3: National Income Accounting -Consider Table 2.3. Using the Laspeyres index, inflation between 2017 and 2018 was about:

The largest share of household consumption expenditures is durable goods.

The difference between economic profits and normal profits is that:

U.S. expenditure shares by households, firms, and the government were relatively except during .

Using the expenditure approach to national income accounting, when discussing government expenditures, do we include transfer payments? Why or why not?

The chain-weighted measure of real GDP uses prices from a:

The National Income and Product Accounts allows us to relate to to .

If NGDP is nominal GDP and RGDP is real GDP, which of the following can be used to calculate inflation?

In 2015, the U.S. GDP was about , and was/were the largest share.

Introduction to Macroeconomics

An Overview of Long-Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market, Wages, and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Dsge Models: the Frontier of Business Cycle Research

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

Exam 2: Measuring the Macroeconomy

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

Suppose we calculate the percent change in real GDP from year 1 to year 2 using both the Laspeyres and the Paasche indices. With the Laspeyres index we get 12 percent and with the Paasche index we get 9 percent. The chain-weighted growth of real GDP is ________ percent.

Prior to the late 1970s, the United States ________ about as much as it ________.

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

Using the expenditure approach, government expenditures include:

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

Refer to the following table when answering the following questions. Table 2.1: U.S. 2010 and 2015 Expenditures ($ billions) -Consider Table 2.1. The federal government's share of total GDP in 2010 was about ________ percent, and in 2015 it was ________ percent.

Using the expenditure approach, consumption expenditures include household purchases of:

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

GDP often is used as a "measure" of economic welfare; it includes all factors that contribute to economic well-being.

Refer to the following table when answering the following questions. In this economy, only two goods are produced: video games and pistachios. Table 2.3: National Income Accounting -Consider Table 2.3. Using the Laspeyres index, inflation between 2017 and 2018 was about:

The largest share of household consumption expenditures is durable goods.

The difference between economic profits and normal profits is that:

U.S. expenditure shares by households, firms, and the government were relatively ________ except during ________.

Using the expenditure approach to national income accounting, when discussing government expenditures, do we include transfer payments? Why or why not?

The chain-weighted measure of real GDP uses prices from a:

The National Income and Product Accounts allows us to relate ________ to ________ to ________.

If NGDP is nominal GDP and RGDP is real GDP, which of the following can be used to calculate inflation?

In 2015, the U.S. GDP was about ________, and ________ was/were the largest share.

Introduction to Macroeconomics

An Overview of Long-Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market, Wages, and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Dsge Models: the Frontier of Business Cycle Research

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

Prior to the late 1970s, the United States about as much as it .

Refer to the following table when answering the following questions. Table 2.1: U.S. 2010 and 2015 Expenditures ($ billions) -Consider Table 2.1. The federal government's share of total GDP in 2010 was about percent, and in 2015 it was percent.

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

U.S. expenditure shares by households, firms, and the government were relatively except during .

The National Income and Product Accounts allows us to relate to to .

In 2015, the U.S. GDP was about , and was/were the largest share.