Question 1

The largest GDP expenditure share historically has been government expenditure.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following counts toward changes in the current GDP?

Accepted Answer

A)  You find $10 on the sidewalk. 
B)  You purchase a used stereo from a friend. 
C)  The government builds a new highway. 
D)  You fix your own sink. 
E)  None of these answers is correct. 
A)  You find $10 on the sidewalk. 
B)  You purchase a used stereo from a friend. 
C)  The government builds a new highway. 
D)  You fix your own sink. 
E)  None of these answers is correct.

Question 3

Real 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)  and services produced by an economy, within its borders, over a period of time, at current prices. 
C)  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)  and services produced by an economy, within its borders, over a period of time, at current prices. 
C)  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 4

Who led the team that created the original National Income and Product Accounts in the 1930s?

Accepted Answer

A)  John M. Keynes 
B)  Paul A. Samuelson 
C)  William D. Nordhaus 
D)  Simon Kuznets 
E)  Milton Friedman 
A)  John M. Keynes 
B)  Paul A. Samuelson 
C)  William D. Nordhaus 
D)  Simon Kuznets 
E)  Milton Friedman

Question 5

Real GDP is the ________ of all goods and services produced in a period of time using ________ prices.

Accepted Answer

A)  summation; current 
B)  value; base-year 
C)  value; 1970 
D)  value; 1945 
E)  summation; base-year 
A)  summation; current 
B)  value; base-year 
C)  value; 1970 
D)  value; 1945 
E)  summation; base-year

Question 6

To get a more accurate view of the size of countries' economies, we first need to convert each country's GDP to the dollar using ________ and then adjust for ________.

Accepted Answer

A)  the interest rate; the exchange rate 
B)  the exchange rate; price level differences 
C)  price level differences; the interest rate 
D)  the exchange rate; fiscal policy 
E)  fiscal policy; the exchange rate 
A)  the interest rate; the exchange rate 
B)  the exchange rate; price level differences 
C)  price level differences; the interest rate 
D)  the exchange rate; fiscal policy 
E)  fiscal policy; the exchange rate

Question 7

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, the real GDP in 2017 is:

Accepted Answer

A)  $8,900. 
B)  $8,500. 
C)  $1,500. 
D)  $15,500. 
E)  $9,150. 
A)  $8,900. 
B)  $8,500. 
C)  $1,500. 
D)  $15,500. 
E)  $9,150.

Question 8

According to the expenditure approach, if Y is GDP, C is consumption, I is investment, G is government purchases, and NX is net exports, which of the following is the national income identity?

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 9

If we want to calculate the Mexican real GDP in U.S. dollars but adjusted for prices, 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 10

In the past 60 years or so, labor's share of GDP in the United States ________.

Accepted Answer

A)  has been roughly two-thirds. 
B)  has been exactly 50 percent. 
C)  has been roughly one-third. 
D)  has been equal to capital's income share. 
E)  has risen sharply. 
A)  has been roughly two-thirds. 
B)  has been exactly 50 percent. 
C)  has been roughly one-third. 
D)  has been equal to capital's income share. 
E)  has risen sharply.

Question 11

If the percent change in real GDP is found to be 4 percent using the Laspeyres index and 3 percent using the Paasche index, the chain-weighted price index will give us a growth rate of 3.5 percent.

Accepted Answer

A) True 
 B)False

Question 12

Household consumption as a share of GDP ________ and investment's share ________ between 2010 and 2015.

Accepted Answer

A)  decreased; increased 
B)  stayed the same; increased 
C)  decreased; stayed the same 
D)  increased; decreased 
E)  stayed the same; stayed the same 
A)  decreased; increased 
B)  stayed the same; increased 
C)  decreased; stayed the same 
D)  increased; decreased 
E)  stayed the same; stayed the same

Question 13

If Croatia's price level is higher than the U.S. price level, Croatia's dollar-denominated GDP, calculated using price adjustments, will appear smaller than if simply calculated with the exchange rate.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following are included in the expenditure approach to national income accounting?

Accepted Answer

A)  defense expenditures 
B)  firm expenditures on equipment 
C)  residential expenditures 
D)  household service expenditures 
E)  All of these answers are correct. 
A)  defense expenditures 
B)  firm expenditures on equipment 
C)  residential expenditures 
D)  household service expenditures 
E)  All of these answers are correct.

Question 15

In 2012, consumption expenditures accounted for over 70 percent of the total GDP.

Accepted Answer

A) True 
 B)False

Question 16

By how much does the current GDP rise in the following scenario? A real estate agent sells a house for $250,000 that the previous owners had purchased 10 years earlier for $90,000. The real estate agent earns a commission of $10,000.

Accepted Answer

A)  $160,000 
B)  $250,000 
C)  $10,000 
D)  $90,000 
E)  $260,000 
A)  $160,000 
B)  $250,000 
C)  $10,000 
D)  $90,000 
E)  $260,000

Question 17

If you own your own home, National Accounts uses ________ to measure the value of your home.

Accepted Answer

A)  the geometric mean of the highest- and lowest-priced houses in your neighborhood 
B)  the original purchase price 
C)  an estimated price of your house based on current market conditions 
D)  "rental equivalents" 
E)  the value of your home to your insurance carrier 
A)  the geometric mean of the highest- and lowest-priced houses in your neighborhood 
B)  the original purchase price 
C)  an estimated price of your house based on current market conditions 
D)  "rental equivalents" 
E)  the value of your home to your insurance carrier

Question 18

Which measure of overall economic activity was NOT available in the 1930s?

Accepted Answer

A)  stock prices 
B)  GDP 
C)  industrial production 
D)  steel production 
E)  gold prices 
A)  stock prices 
B)  GDP 
C)  industrial production 
D)  steel production 
E)  gold prices

Question 19

Nominal GDP means that the value of all goods and services is measured in ________ prices.

Accepted Answer

A)  average 
B)  last year's 
C)  the base year's 
D)  current 
E)  constant 
A)  average 
B)  last year's 
C)  the base year's 
D)  current 
E)  constant

Question 20

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 2018 is:

Accepted Answer

A)  $9,150. 
B)  $8,500. 
C)  $8,600. 
D)  $9,025. 
E)  $8,475. 
A)  $9,150. 
B)  $8,500. 
C)  $8,600. 
D)  $9,025. 
E)  $8,475.

Exam 2: Measuring the Macroeconomy

The largest GDP expenditure share historically has been government expenditure.

Which of the following counts toward changes in the current GDP?

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

Who led the team that created the original National Income and Product Accounts in the 1930s?

Real GDP is the ________ of all goods and services produced in a period of time using ________ prices.

To get a more accurate view of the size of countries' economies, we first need to convert each country's GDP to the dollar using ________ and then adjust for ________.

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, the real GDP in 2017 is:

According to the expenditure approach, if Y is GDP, C is consumption, I is investment, G is government purchases, and NX is net exports, which of the following is the national income identity?

If we want to calculate the Mexican real GDP in U.S. dollars but adjusted for prices, which of the following would we use?

In the past 60 years or so, labor's share of GDP in the United States ________.

If the percent change in real GDP is found to be 4 percent using the Laspeyres index and 3 percent using the Paasche index, the chain-weighted price index will give us a growth rate of 3.5 percent.

Household consumption as a share of GDP ________ and investment's share ________ between 2010 and 2015.

If Croatia's price level is higher than the U.S. price level, Croatia's dollar-denominated GDP, calculated using price adjustments, will appear smaller than if simply calculated with the exchange rate.

Which of the following are included in the expenditure approach to national income accounting?

In 2012, consumption expenditures accounted for over 70 percent of the total GDP.

By how much does the current GDP rise in the following scenario? A real estate agent sells a house for $250,000 that the previous owners had purchased 10 years earlier for $90,000. The real estate agent earns a commission of $10,000.

If you own your own home, National Accounts uses ________ to measure the value of your home.

Which measure of overall economic activity was NOT available in the 1930s?

Nominal GDP means that the value of all goods and services is measured in ________ prices.

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 2018 is:

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

Real GDP is the of all goods and services produced in a period of time using prices.

To get a more accurate view of the size of countries' economies, we first need to convert each country's GDP to the dollar using and then adjust for .

Household consumption as a share of GDP and investment's share between 2010 and 2015.