Exam 2: Measuring Macroeconomic Data

In the 1970s,nominal interest rates in the United States were quite high,while real rates were extremely low.Which group "wins" in this circumstance,lenders or borrowers? What might explain the willingness of the "losers" to accept disadvantageous loan terms?

Subtraction of ________ from Gross National Product yields Gross Domestic Product.

The reason only newly produced goods and services are counted in GDP is that ________.

Examples of deflators are the ________ and ________ deflator

The real interest rate differs from the nominal rate in that ________.

Describe how the investment component of GDP is distinct from the other components.

The fundamental identity of national income accounting implies ________.

The statistic most often used by economists to measure the value of economic activity is ________.

The unemployment rate is computed by ________.

An example of a nominal variable is ________.

An increase in the expected rate of inflation is most likely to cause an increase in ________.

Capital goods are typically purchased to ________.They get included in GDP ________.

-Based on the table "Real and Nominal GDP," if year one is the base year,then the real GDP in year two,is ________.

A few economies have the interesting characteristic that exports are more than 100 percent of the economy's GDP.How is this possible?

Assume that a high proportion of recent college graduates decides to stay in school seeking advanced degrees,rather than confront the challenge of landing a good job in the midst of generally high unemployment.What is the direct impact of this behavior on (a)the labor force participation rate, (b)the employment ratio,and (c)the unemployment rate?

Over the past half-century,government transfer payments have increased.As a result ________.

Which of the following is a valid characteristic of the U.S.economy over the last sixty years?

-Based on the table "Real and Nominal GDP," if year one is the base year,then the GDP deflator for year three is ________.

According to the fundamental identity of national income accounting,income and output are identical.Why,then,is national income not equal to GDP?

The Bureau of Labor Statistics (BLS)reports the CPI ________.