Question 1

An economy's ______ equals its ______.

Accepted Answer

A)  consumption; income 
B)  consumption; expenditure on goods and services 
C)  expenditure on goods; expenditures on services 
D)  total income; total expenditure on goods and services 
A)  consumption; income 
B)  consumption; expenditure on goods and services 
C)  expenditure on goods; expenditures on services 
D)  total income; total expenditure on goods and services

Question 2

The underground economy:

Accepted Answer

A)  is included in the latest GDP accounts. 
B)  includes only illegal activities. 
C)  includes domestic workers for whom Social Security tax is not collected. 
D)  excludes the illegal drug trade. 
A)  is included in the latest GDP accounts. 
B)  includes only illegal activities. 
C)  includes domestic workers for whom Social Security tax is not collected. 
D)  excludes the illegal drug trade.

Question 3

If total consumption (measured in billions of current dollars) equals $3,657, consumption of durable goods is $480, and consumption of nondurable goods is $1,194, then consumption of services is:

Accepted Answer

A)  $1,674. 
B)  $2,463. 
C)  $2,083. 
D)  $1,983. 
A)  $1,674. 
B)  $2,463. 
C)  $2,083. 
D)  $1,983.

Question 4

The employment statistics computed from the establishment survey do not include:

Accepted Answer

A)  workers with two jobs. 
B)  the self-employed. 
C)  workers on firms' payrolls. 
D)  part-time workers on firms' payrolls. 
A)  workers with two jobs. 
B)  the self-employed. 
C)  workers on firms' payrolls. 
D)  part-time workers on firms' payrolls.

Question 5

The new chain-weighted measures of real GDP are an improvement over traditional measures because the prices used to compute real GDP are:

Accepted Answer

A)  never far out of date. 
B)  always from the same base year. 
C)  imputed. 
D)  chained to the CPI. 
A)  never far out of date. 
B)  always from the same base year. 
C)  imputed. 
D)  chained to the CPI.

Question 6

Nominal 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

Question 7

The CPI is determined by computing:

Accepted Answer

A)  an average of prices of all goods and services. 
B)  the price of a basket of goods and services that changes every year, relative to the same basket in a base year. 
C)  the price of a fixed basket of goods and services, relative to the price of the same basket in a base year. 
D)  nominal GDP relative to real GDP. 
A)  an average of prices of all goods and services. 
B)  the price of a basket of goods and services that changes every year, relative to the same basket in a base year. 
C)  the price of a fixed basket of goods and services, relative to the price of the same basket in a base year. 
D)  nominal GDP relative to real GDP.

Question 8

The labor-force participation rate is the percentage of the:

Accepted Answer

A)  adult population that is employed. 
B)  adult population that is in the labor force. 
C)  labor force that is employed. 
D)  labor force that is unemployed. 
A)  adult population that is employed. 
B)  adult population that is in the labor force. 
C)  labor force that is employed. 
D)  labor force that is unemployed.

Question 9

In the national income accounts, government purchases are goods and services purchased by:

Accepted Answer

A)  the federal government. 
B)  the federal and state governments. 
C)  the state and local governments. 
D)  the federal, state, and local governments. 
A)  the federal government. 
B)  the federal and state governments. 
C)  the state and local governments. 
D)  the federal, state, and local governments.

Question 10

Nominal GDP measures the value of goods and services in ______ prices, while real GDP measures the value of goods and services in ______ prices.

Accepted Answer

A)  foreign; domestic 
B)  domestic; foreign 
C)  current; constant 
D)  constant; current 
A)  foreign; domestic 
B)  domestic; foreign 
C)  current; constant 
D)  constant; current

Question 11

Assume that a tire company sells 4 tires to an automobile company for $400, another company sells a compact disc player for $500, and the automobile company puts all of these items in or on a car that it sells for $20,000. In this case, the amount from these transactions that should be counted in GDP is:

Accepted Answer

A)  $20,000. 
B)  $20,000 less the automobile company's profit on the car. 
C)  $20,900. 
D)  $20,900 less the profits of all three companies on the items that they sold. 
A)  $20,000. 
B)  $20,000 less the automobile company's profit on the car. 
C)  $20,900. 
D)  $20,900 less the profits of all three companies on the items that they sold.

Question 12

Into which of the three categories-employed, unemployed, out of the labor force-would an interviewer for the Current Population Survey place each of the following people? Explain. a. Jennifer Temple is working as a second-grade schoolteacher.
b. Frank Peabody is attending college full-time to earn a degree in elementary education.
c. Martin Hampton is working as a high school social science teacher but is at home sick with the flu.
d. Kyle Brown does not currently have ajob. He wants to be an elementary-school teacher. He has the appropriate degree. He has not looked for a position in the last month because he doesnt believe schools are currently hiring.
e. Brenda Dewey does not currently have a job. She has sent her resume to several school districts in the past week in hope of finding a teaching position.

Accepted Answer

a. employed. She is working as a full-ti

Question 13

Based on the data in the table below, explain what happened to output and prices in the economy between 2009 and 2010. $$\begin{array} { l c c } 
& 2009 & 2010 \
\text { Nominal GDP (\$ billions) } & \$ 14,700 & \$ 15,200 \
\text { Real GDP (\$ billions 2000 chain weighted) } & \$ 12,100 & \$ 11,900
\end{array}$$

Accepted Answer

Real GDP decreased, indicating that the

Question 14

In the national income accounts, all of the following are classified as government purchases except:

Accepted Answer

A)  payments made to Social Security recipients. 
B)  services provided by police officers. 
C)  purchases of military hardware. 
D)  services provided by U.S. senators. 
A)  payments made to Social Security recipients. 
B)  services provided by police officers. 
C)  purchases of military hardware. 
D)  services provided by U.S. senators.

Question 15

All of the following are a stock except:

Accepted Answer

A)  a consumer's wealth. 
B)  the government budget deficit. 
C)  the number of unemployed people. 
D)  the amount of capital in the economy. 
A)  a consumer's wealth. 
B)  the government budget deficit. 
C)  the number of unemployed people. 
D)  the amount of capital in the economy.

Question 16

If real GDP grew by 6 percent and population grew by 2 percent, then real GDP per person grew by approximately ______ percent.

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  8 
A)  2 
B)  3 
C)  4 
D)  8

Question 17

In the United States since the end of World War II:

Accepted Answer

A)  the labor force participation rates of both men and women have increased. 
B)  the labor force participation rates of both men and women have decreased. 
C)  the labor force participation rate of men has increased, while the labor force participation rate of women has decreased. 
D)  the labor force participation rate of men has decreased, while the labor force participation rate of women has increased. 
A)  the labor force participation rates of both men and women have increased. 
B)  the labor force participation rates of both men and women have decreased. 
C)  the labor force participation rate of men has increased, while the labor force participation rate of women has decreased. 
D)  the labor force participation rate of men has decreased, while the labor force participation rate of women has increased.

Question 18

If an increasing proportion of the adult population is retired, then the labor force participation rate:

Accepted Answer

A)  will increase. 
B)  will decrease. 
C)  will remain constant. 
D)  may increase, decrease, or remain constant. 
A)  will increase. 
B)  will decrease. 
C)  will remain constant. 
D)  may increase, decrease, or remain constant.

Question 19

In the circular flow model, the flow of dollars from firms to households is paid _____ and the flow of dollars from households to firms is paid _____.

Accepted Answer

A)  as wages and profits; for goods and services 
B)  for value added; as imputed values 
C)  in current dollars; in constant dollars 
D)  as interest and dividends; for depreciation and taxes 
A)  as wages and profits; for goods and services 
B)  for value added; as imputed values 
C)  in current dollars; in constant dollars 
D)  as interest and dividends; for depreciation and taxes

Question 20

An estimate of total employment 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.

An economy's equals its .

The underground economy:

If total consumption (measured in billions of current dollars) equals $3,657, consumption of durable goods is $480, and consumption of nondurable goods is $1,194, then consumption of services is:

The employment statistics computed from the establishment survey do not include:

The new chain-weighted measures of real GDP are an improvement over traditional measures because the prices used to compute real GDP are:

Nominal GDP is measured in _ prices _ time.

The CPI is determined by computing:

The labor-force participation rate is the percentage of the:

In the national income accounts, government purchases are goods and services purchased by:

Nominal GDP measures the value of goods and services in prices, while real GDP measures the value of goods and services in prices.

Based on the data in the table below, explain what happened to output and prices in the economy between 2009 and 2010. 2009 2010 Nominal GDP (\ billions) \ 14,700 \ 15,200 Real GDP (\ billions 2000 chain weighted) \ 12,100 \ 11,900

In the national income accounts, all of the following are classified as government purchases except:

All of the following are a stock except:

If real GDP grew by 6 percent and population grew by 2 percent, then real GDP per person grew by approximately ______ percent.

In the United States since the end of World War II:

If an increasing proportion of the adult population is retired, then the labor force participation rate:

In the circular flow model, the flow of dollars from firms to households is paid _ and the flow of dollars from households to firms is paid _.

An estimate of total employment in the economy can be obtained from:

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

An economy's ______ equals its ______.

The underground economy:

If total consumption (measured in billions of current dollars) equals $3,657, consumption of durable goods is $480, and consumption of nondurable goods is $1,194, then consumption of services is:

The employment statistics computed from the establishment survey do not include:

The new chain-weighted measures of real GDP are an improvement over traditional measures because the prices used to compute real GDP are:

Nominal GDP is measured in _____ prices _____ time.

The CPI is determined by computing:

The labor-force participation rate is the percentage of the:

In the national income accounts, government purchases are goods and services purchased by:

Nominal GDP measures the value of goods and services in ______ prices, while real GDP measures the value of goods and services in ______ prices.

Based on the data in the table below, explain what happened to output and prices in the economy between 2009 and 2010. 2009 2010 Nominal GDP (\ billions) \ 14,700 \ 15,200 Real GDP (\ billions 2000 chain weighted) \ 12,100 \ 11,900

In the national income accounts, all of the following are classified as government purchases except:

All of the following are a stock except:

If real GDP grew by 6 percent and population grew by 2 percent, then real GDP per person grew by approximately ______ percent.

In the United States since the end of World War II:

If an increasing proportion of the adult population is retired, then the labor force participation rate:

In the circular flow model, the flow of dollars from firms to households is paid _____ and the flow of dollars from households to firms is paid _____.

An estimate of total employment in the economy can be obtained from:

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

An economy's equals its .

Nominal GDP is measured in _ prices _ time.

Nominal GDP measures the value of goods and services in prices, while real GDP measures the value of goods and services in prices.

In the circular flow model, the flow of dollars from firms to households is paid _ and the flow of dollars from households to firms is paid _.