Question 1

In principle, the GDP accounts should-but do not-have an imputation for:

Accepted Answer

A)  housing services enjoyed by homeowners. 
B)  rental services of automobiles driven by owners. 
C)  meals cooked in restaurants. 
D)  housing services enjoyed by renters. 
A)  housing services enjoyed by homeowners. 
B)  rental services of automobiles driven by owners. 
C)  meals cooked in restaurants. 
D)  housing services enjoyed by renters.

Question 2

Unlike the GDP deflator, the CPI includes the prices of:

Accepted Answer

A)  goods purchased by firms. 
B)  goods purchased by governments. 
C)  exported goods. 
D)  imported goods. 
A)  goods purchased by firms. 
B)  goods purchased by governments. 
C)  exported goods. 
D)  imported goods.

Question 3

In the national income accounts, net exports equal:

Accepted Answer

A)  exported goods minus imported goods. 
B)  exported goods and services minus imported goods and services. 
C)  exported goods minus imported services. 
D)  exported goods and services plus imported goods and services. 
A)  exported goods minus imported goods. 
B)  exported goods and services minus imported goods and services. 
C)  exported goods minus imported services. 
D)  exported goods and services plus imported goods and services.

Question 4

GNP equals GDP ______ income earned domestically by foreigners ______ income that nationals earn abroad.

Accepted Answer

A)  plus; plus 
B)  minus; minus 
C)  minus; plus 
D)  plus; minus 
A)  plus; plus 
B)  minus; minus 
C)  minus; plus 
D)  plus; minus

Question 5

An estimate of the number of unemployed workers in the economy can be obtained from:

Accepted Answer

A)  both the household and establishment surveys. 
B)  from the household survey, but not from the establishment survey. 
C)  from the establishment survey, but not from the household survey. 
D)  from neither the household nor the establishment surveys. 
A)  both the household and establishment surveys. 
B)  from the household survey, but not from the establishment survey. 
C)  from the establishment survey, but not from the household survey. 
D)  from neither the household nor the establishment surveys.

Question 6

If total investment (measured in billions of current dollars) equals $741, business fixed investment is $524, and residential fixed investment is $222, then inventory investment is:

Accepted Answer

A)  $5. 
B)  -$5. 
C)  $15. 
D)  -$15. 
A)  $5. 
B)  -$5. 
C)  $15. 
D)  -$15.

Question 7

To avoid double counting in the computation of GDP, only the value of ______ goods are included.

Accepted Answer

A)  final 
B)  used 
C)  intermediate 
D)  investment 
A)  final 
B)  used 
C)  intermediate 
D)  investment

Question 8

The panel of economists appointed by the Senate Finance Committee estimated that the CPI ______ inflation by approximately ______ percentage point(s) per year.

Accepted Answer

A)  overestimates; 1 
B)  overestimates; 10 
C)  underestimates; 1 
D)  underestimates; 10 
A)  overestimates; 1 
B)  overestimates; 10 
C)  underestimates; 1 
D)  underestimates; 10

Question 9

"GDP deflator is a better price level indicator than CPI." Give reasons both supporting and opposing the statement.

Accepted Answer

The advantage of using a GDP deflator is

Question 10

Real GDP means the value of goods and services is measured in ______ prices.

Accepted Answer

A)  current 
B)  actual 
C)  constant 
D)  average 
A)  current 
B)  actual 
C)  constant 
D)  average

Question 11

In the national income accounts, the purchase of durables, nondurables, and services by households are classified as:

Accepted Answer

A)  consumption. 
B)  investment. 
C)  government purchases. 
D)  net exports. 
A)  consumption. 
B)  investment. 
C)  government purchases. 
D)  net exports.

Question 12

In the national income accounts, consumption expenditures include all of the following except household purchases of:

Accepted Answer

A)  durable goods. 
B)  nondurable goods. 
C)  new residential housing. 
D)  services. 
A)  durable goods. 
B)  nondurable goods. 
C)  new residential housing. 
D)  services.

Question 13

When a firm sells a product out of inventory, GDP:

Accepted Answer

A)  increases. 
B)  decreases. 
C)  is not changed. 
D)  increases or decreases, depending on the year the product was produced. 
A)  increases. 
B)  decreases. 
C)  is not changed. 
D)  increases or decreases, depending on the year the product was produced.

Question 14

Two equivalent ways to view GDP are as the:

Accepted Answer

A)  total payments made to all workers in the economy or the total profits of all firms and businesses in the economy. 
B)  total expenditures on all goods produced in the economy or the total income earned from producing all services in the economy. 
C)  total profits of all firms and businesses in the economy or the total consumption of goods and services by all households in the economy. 
D)  total income of everyone in the economy or the total expenditure on the economy's output of goods and services. 
A)  total payments made to all workers in the economy or the total profits of all firms and businesses in the economy. 
B)  total expenditures on all goods produced in the economy or the total income earned from producing all services in the economy. 
C)  total profits of all firms and businesses in the economy or the total consumption of goods and services by all households in the economy. 
D)  total income of everyone in the economy or the total expenditure on the economy's output of goods and services.

Question 15

The best measure of the economic satisfaction of the members of a society is:

Accepted Answer

A)  nominal GDP. 
B)  real GDP. 
C)  the rate of inflation. 
D)  the value of corporate profits. 
A)  nominal GDP. 
B)  real GDP. 
C)  the rate of inflation. 
D)  the value of corporate profits.

Question 16

All of the following transactions that took place in 2009 would be included in GDP for 2009 except the purchase of a:

Accepted Answer

A)  book printed in 2009, entitled The Year 3000. 
B)  2001 Jeep Cherokee. 
C)  year 2010 calendar printed in 2009. 
D)  ticket to see the movie 2001. 
A)  book printed in 2009, entitled The Year 3000. 
B)  2001 Jeep Cherokee. 
C)  year 2010 calendar printed in 2009. 
D)  ticket to see the movie 2001.

Question 17

Prices of items included in the CPI are:

Accepted Answer

A)  averaged with the price of every item weighted equally. 
B)  weighted according to amount of the item produced in GDP. 
C)  weighted according to quantity of the item purchased by the typical household. 
D)  chained to the base year by the year-to-year growth rate of the item. 
A)  averaged with the price of every item weighted equally. 
B)  weighted according to amount of the item produced in GDP. 
C)  weighted according to quantity of the item purchased by the typical household. 
D)  chained to the base year by the year-to-year growth rate of the item.

Question 18

If the number of employed increases while the number of unemployed does not change, the unemployment rate:

Accepted Answer

A)  will increase. 
B)  will decrease. 
C)  will not change. 
D)  may either increase or decrease. 
A)  will increase. 
B)  will decrease. 
C)  will not change. 
D)  may either increase or decrease.

Question 19

The total income of everyone in the economy is exactly equal to the total:

Accepted Answer

A)  expenditure on the economy's output of goods and services. 
B)  consumption expenditures of everyone in the economy. 
C)  expenditures of all businesses in the economy. 
D)  government expenditures. 
A)  expenditure on the economy's output of goods and services. 
B)  consumption expenditures of everyone in the economy. 
C)  expenditures of all businesses in the economy. 
D)  government expenditures.

Question 20

Real GDP is measured in _____ prices ____ time.

Accepted Answer

A)  current; at a point in 
B)  current; per unit of 
C)  constant; at a point in 
D)  constant; per unit of 
A)  current; at a point in 
B)  current; per unit of 
C)  constant; at a point in 
D)  constant; per unit of

In principle, the GDP accounts should-but do not-have an imputation for:

Unlike the GDP deflator, the CPI includes the prices of:

In the national income accounts, net exports equal:

GNP equals GDP income earned domestically by foreigners income that nationals earn abroad.

An estimate of the number of unemployed workers in the economy can be obtained from:

If total investment (measured in billions of current dollars) equals $741, business fixed investment is $524, and residential fixed investment is $222, then inventory investment is:

To avoid double counting in the computation of GDP, only the value of ______ goods are included.

The panel of economists appointed by the Senate Finance Committee estimated that the CPI inflation by approximately percentage point(s) per year.

"GDP deflator is a better price level indicator than CPI." Give reasons both supporting and opposing the statement.

Real GDP means the value of goods and services is measured in ______ prices.

In the national income accounts, the purchase of durables, nondurables, and services by households are classified as:

In the national income accounts, consumption expenditures include all of the following except household purchases of:

When a firm sells a product out of inventory, GDP:

Two equivalent ways to view GDP are as the:

The best measure of the economic satisfaction of the members of a society is:

All of the following transactions that took place in 2009 would be included in GDP for 2009 except the purchase of a:

Prices of items included in the CPI are:

If the number of employed increases while the number of unemployed does not change, the unemployment rate:

The total income of everyone in the economy is exactly equal to the total:

Real GDP is measured in _ prices time.

The Science of Macroeconomics

National Income: Where It Comes From and Where It Goes

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labor Market

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Is-Lm Model

Aggregate Demand Ii: Applying the Is-Lm Model

The Open Economy Revisited: the Mundell-Fleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Understanding Consumer Behavior

The Theory of Investment

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

Filters

Exam 2: The Data of Macroeconomics

In principle, the GDP accounts should-but do not-have an imputation for:

Unlike the GDP deflator, the CPI includes the prices of:

In the national income accounts, net exports equal:

GNP equals GDP ______ income earned domestically by foreigners ______ income that nationals earn abroad.

An estimate of the number of unemployed workers in the economy can be obtained from:

If total investment (measured in billions of current dollars) equals $741, business fixed investment is $524, and residential fixed investment is $222, then inventory investment is:

To avoid double counting in the computation of GDP, only the value of ______ goods are included.

The panel of economists appointed by the Senate Finance Committee estimated that the CPI ______ inflation by approximately ______ percentage point(s) per year.

"GDP deflator is a better price level indicator than CPI." Give reasons both supporting and opposing the statement.

Real GDP means the value of goods and services is measured in ______ prices.

In the national income accounts, the purchase of durables, nondurables, and services by households are classified as:

In the national income accounts, consumption expenditures include all of the following except household purchases of:

When a firm sells a product out of inventory, GDP:

Two equivalent ways to view GDP are as the:

The best measure of the economic satisfaction of the members of a society is:

All of the following transactions that took place in 2009 would be included in GDP for 2009 except the purchase of a:

Prices of items included in the CPI are:

If the number of employed increases while the number of unemployed does not change, the unemployment rate:

The total income of everyone in the economy is exactly equal to the total:

Real GDP is measured in _____ prices ____ time.

The Science of Macroeconomics

National Income: Where It Comes From and Where It Goes

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labor Market

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Is-Lm Model

Aggregate Demand Ii: Applying the Is-Lm Model

The Open Economy Revisited: the Mundell-Fleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Understanding Consumer Behavior

The Theory of Investment

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

Filters

GNP equals GDP income earned domestically by foreigners income that nationals earn abroad.

The panel of economists appointed by the Senate Finance Committee estimated that the CPI inflation by approximately percentage point(s) per year.

Real GDP is measured in _ prices time.