Question 1

When you cook yourself dinner, you are contributing to economic activity, but it is not measured in GDP.

Accepted Answer

A) True 
 B)False

Question 2

Define E =$/£ as the dollar/pound exchange rate and NGDPUK as the United Kingdom's nominal GDP; then   , the United Kingdom's nominal GDP in dollars, is given by:

Accepted Answer

A)    . 
B)    . 
C)    . 
D)    . 
E)  None of these answers is correct. 
A)    . 
B)    . 
C)    . 
D)    . 
E)  None of these answers is correct.

Question 3

Refer to the following table when answering the following questions.
Table 2.1: U.S. 2010 and 2015 Expenditures ($ billions)  
-Consider Table 2.1. Total GDP in 2010 was about ________ billion.

Accepted Answer

A)  $16,520 
B)  $14,964 
C)  $11,790 
D)  $36,698 
E)  $15,459 
A)  $16,520 
B)  $14,964 
C)  $11,790 
D)  $36,698 
E)  $15,459

Question 4

In 2015, government expenditures accounted for about ________ percent of total GDP.

Accepted Answer

A)  5 
B)  -4 
C)  66 
D)  13 
E)  18 
A)  5 
B)  -4 
C)  66 
D)  13 
E)  18

Question 5

FRED stands for:

Accepted Answer

A)  Food and Resource Economics Department. 
B)  Financial Reporting Exposure Draft. 
C)  Federal Reserve Economic Database. 
D)  Florida Research & Economic Database. 
E)  Faculty Research Expertise Database. 
A)  Food and Resource Economics Department. 
B)  Financial Reporting Exposure Draft. 
C)  Federal Reserve Economic Database. 
D)  Florida Research & Economic Database. 
E)  Faculty Research Expertise Database.

Question 6

Goods that are produced in a different year than they are sold are called:

Accepted Answer

A)  inventory. 
B)  output adjustment. 
C)  capital depreciation. 
D)  a loss. 
E)  net national product. 
A)  inventory. 
B)  output adjustment. 
C)  capital depreciation. 
D)  a loss. 
E)  net national product.

Question 7

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 and adjust for price differences, the U.S. economy is about ________ times the size of the eurozone economy.

Accepted Answer

A)  1.6 
B)  0.6 
C)  1.9 
D)  1.4 
E)  0.8 
A)  1.6 
B)  0.6 
C)  1.9 
D)  1.4 
E)  0.8

Question 8

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 Paasche index, the real GDP in 2017 is:

Accepted Answer

A)  $8,475. 
B)  $8,500. 
C)  $8,600. 
D)  $9,150. 
E)  $8,875. 
A)  $8,475. 
B)  $8,500. 
C)  $8,600. 
D)  $9,150. 
E)  $8,875.

Question 9

Refer to the following table when answering the following questions.
Table 2.2: U.S. 2014-2015 Domestic Income ($ billions)  
-Consider Table 2.2. From this data, total net domestic product in 2015 was about ________ billion.

Accepted Answer

A)  $15,366 
B)  $10,791 
C)  $18,290 
D)  $9,648 
E)  $15,460 
A)  $15,366 
B)  $10,791 
C)  $18,290 
D)  $9,648 
E)  $15,460

Question 10

If the nominal GDP rises by 6 percent and the real GDP rises by 3 percent, then the price level ________ by ________ percent.

Accepted Answer

A)  rises; 3 
B)  rises; 9 
C)  falls; 3 
D)  falls; 9 
E)  There is no change in inflation. 
A)  rises; 3 
B)  rises; 9 
C)  falls; 3 
D)  falls; 9 
E)  There is no change in inflation.

Question 11

If NGDP is nominal GDP and P is the price level, which of the following can be used to calculate the growth of the real GDP?

Accepted Answer

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

Question 12

The National Income and Product Accounts identity states:

Accepted Answer

A)  Expenditure = Production + Income. 
B)  Production = Expenditure - Income. 
C)  Production = Expenditure + Income. 
D)  Expenditure = Production - Income. 
E)  Production =Expenditure = Income. 
A)  Expenditure = Production + Income. 
B)  Production = Expenditure - Income. 
C)  Production = Expenditure + Income. 
D)  Expenditure = Production - Income. 
E)  Production =Expenditure = Income.

Question 13

If the nominal GDP rises by 6 percent and the price level rises by 3 percent, then the real GDP ________ by ________ percent.

Accepted Answer

A)  falls; 3 
B)  rises; 9 
C)  rises; 3 
D)  falls; 9 
E)  None of these answers is correct. 
A)  falls; 3 
B)  rises; 9 
C)  rises; 3 
D)  falls; 9 
E)  None of these answers is correct.

Question 14

According to the income approach to GDP, the largest portion of GDP is net operating surplus.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  software 
B)  taxes 
C)  defense expenditures 
D)  All of these answers are correct. 
E)  None of these answers is correct. 
A)  software 
B)  taxes 
C)  defense expenditures 
D)  All of these answers are correct. 
E)  None of these answers is correct.

Question 16

Nominal gross domestic product is defined as the value of all goods:

Accepted Answer

A)  and services produced by an economy, within its borders, over a period of time, at base-year prices. 
B)  produced by an economy, within its borders, over a period of time, at current prices. 
C)  and services produced by an economy, within its borders, over a period of time, at current prices. 
D)  and services produced by an economy's citizens, regardless of where they live, over a period of time, at current prices. 
E)  and services produced by an economy's citizens, regardless of where they live, over a period of time, at base-year prices. 
A)  and services produced by an economy, within its borders, over a period of time, at base-year prices. 
B)  produced by an economy, within its borders, over a period of time, at current prices. 
C)  and services produced by an economy, within its borders, over a period of time, at current prices. 
D)  and services produced by an economy's citizens, regardless of where they live, over a period of time, at current prices. 
E)  and services produced by an economy's citizens, regardless of where they live, over a period of time, at base-year prices.

Question 17

Since about 1970, ________ income share of GDP has been ________.

Accepted Answer

A)  labor's; rising 
B)  labor's; the same or falling 
C)  profits'; falling 
D)  indirect business taxes'; rising 
E)  the health sector's; falling 
A)  labor's; rising 
B)  labor's; the same or falling 
C)  profits'; falling 
D)  indirect business taxes'; rising 
E)  the health sector's; falling

Question 18

The price level can be derived as ________ and is called the ________.

Accepted Answer

A)  Price level = Nominal GDP ｸ Real GDP; CPI 
B)  Price level = Nominal GDP ｴ Real GDP; CPI 
C)  Price level =Real GDP ｴ Nominal GDP; GDP deflator 
D)  Price level = Real GDP ｸ Nominal GDP; Paasche deflator 
E)  Price level =Nominal GDP ｸ Real GDP; GDP deflator 
A)  Price level = Nominal GDP ｸ Real GDP; CPI 
B)  Price level = Nominal GDP ｴ Real GDP; CPI 
C)  Price level =Real GDP ｴ Nominal GDP; GDP deflator 
D)  Price level = Real GDP ｸ Nominal GDP; Paasche deflator 
E)  Price level =Nominal GDP ｸ Real GDP; GDP deflator

Question 19

If we want to calculate the U.S. real GDP in Mexican pesos, which of the following would we use?

Accepted Answer

A)    
B)    
C)    
D)    
E)  None of these answers is correct. 
A)    
B)    
C)    
D)    
E)  None of these answers is correct.

Question 20

When a state builds a new penitentiary, ________ rise(s), but that does not imply that ________ improve(s).

Accepted Answer

A)  income; welfare 
B)  GDP; taxes 
C)  GDP; transfers 
D)  GDP; welfare 
E)  taxes; costs 
A)  income; welfare 
B)  GDP; taxes 
C)  GDP; transfers 
D)  GDP; welfare 
E)  taxes; costs

When you cook yourself dinner, you are contributing to economic activity, but it is not measured in GDP.

Define E =$/£ as the dollar/pound exchange rate and NGDP_UK as the United Kingdom's nominal GDP; then , the United Kingdom's nominal GDP in dollars, is given by:

Refer to the following table when answering the following questions. Table 2.1: U.S. 2010 and 2015 Expenditures ($ billions) -Consider Table 2.1. Total GDP in 2010 was about ________ billion.

In 2015, government expenditures accounted for about ________ percent of total GDP.

FRED stands for:

Goods that are produced in a different year than they are sold are called:

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 Paasche index, the real GDP in 2017 is:

Refer to the following table when answering the following questions. Table 2.2: U.S. 2014-2015 Domestic Income ($ billions) -Consider Table 2.2. From this data, total net domestic product in 2015 was about ________ billion.

If the nominal GDP rises by 6 percent and the real GDP rises by 3 percent, then the price level by percent.

If NGDP is nominal GDP and P is the price level, which of the following can be used to calculate the growth of the real GDP?

The National Income and Product Accounts identity states:

If the nominal GDP rises by 6 percent and the price level rises by 3 percent, then the real GDP by percent.

According to the income approach to GDP, the largest portion of GDP is net operating surplus.

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

Nominal gross domestic product is defined as the value of all goods:

Since about 1970, income share of GDP has been .

The price level can be derived as and is called the .

If we want to calculate the U.S. real GDP in Mexican pesos, which of the following would we use?

When a state builds a new penitentiary, rise(s), but that does not imply that improve(s).

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

When you cook yourself dinner, you are contributing to economic activity, but it is not measured in GDP.

Define E =$/£ as the dollar/pound exchange rate and NGDPUK as the United Kingdom's nominal GDP; then , the United Kingdom's nominal GDP in dollars, is given by:

Refer to the following table when answering the following questions. Table 2.1: U.S. 2010 and 2015 Expenditures ($ billions) -Consider Table 2.1. Total GDP in 2010 was about ________ billion.

In 2015, government expenditures accounted for about ________ percent of total GDP.

FRED stands for:

Goods that are produced in a different year than they are sold are called:

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 Paasche index, the real GDP in 2017 is:

Refer to the following table when answering the following questions. Table 2.2: U.S. 2014-2015 Domestic Income ($ billions) -Consider Table 2.2. From this data, total net domestic product in 2015 was about ________ billion.

If the nominal GDP rises by 6 percent and the real GDP rises by 3 percent, then the price level ________ by ________ percent.

If NGDP is nominal GDP and P is the price level, which of the following can be used to calculate the growth of the real GDP?

The National Income and Product Accounts identity states:

If the nominal GDP rises by 6 percent and the price level rises by 3 percent, then the real GDP ________ by ________ percent.

According to the income approach to GDP, the largest portion of GDP is net operating surplus.

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

Nominal gross domestic product is defined as the value of all goods:

Since about 1970, ________ income share of GDP has been ________.

The price level can be derived as ________ and is called the ________.

If we want to calculate the U.S. real GDP in Mexican pesos, which of the following would we use?

When a state builds a new penitentiary, ________ rise(s), but that does not imply that ________ improve(s).

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

Define E =$/£ as the dollar/pound exchange rate and NGDP_UK as the United Kingdom's nominal GDP; then , the United Kingdom's nominal GDP in dollars, is given by:

If the nominal GDP rises by 6 percent and the real GDP rises by 3 percent, then the price level by percent.

If the nominal GDP rises by 6 percent and the price level rises by 3 percent, then the real GDP by percent.

Since about 1970, income share of GDP has been .

The price level can be derived as and is called the .

When a state builds a new penitentiary, rise(s), but that does not imply that improve(s).