Exam 2: The Data of Macroeconomics

In 2013 in the United States, total government purchases per person (in current dollars) amounted to approximately:

The national income accounts identity, for an open economy, is:

The value added of an item produced refers to:

In 2015, John buys a factory built in 2009 and constructs a new storage house within the premises. The transaction of buying the factory is not counted in the GDP, but the construction of the storage house in the same factory is counted in GDP. Why?

In 2013, GDP per person in the United States was approximately:

In 2013, American net borrowings from abroad, per person, in current dollars, amounted to approximately:

A woman marries her butler. Before they were married, she paid him $60,000 per year. He continues to wait on her as before (but as a husband rather than as a wage earner). She earns $1,000,000 per year both before and after her marriage. The marriage:

Disposable personal income:

The investment component of GDP includes all of the following except:

GDP is the market value of all ______ goods and services produced within an economy in a given period of time.

Explain which expenditure category of GDP changes and the direction of the change that results for each transaction described. a. A domestic business purchases a domestically produced computer to use in a business office. b. A domestic business produces a computer that is sold to a foreign company. c. The federal government purchases a domesti cally produced computer to use in a courthouse. d. A domestic household purchases a domestically produced computer to use in a home. e. A domestic household purchases a computer produced in a foreign country to use in a home.

The economic statistic used to measure the level of prices is:

Assume that a bakery hires more workers and pays them wages and that the workers produce more bread. GDP increases in all of the following cases except when the bread:

An increase in the price of imported goods will show up in:

Since GDP includes only the additions to income, not transfers of assets, ______ are not included in the computation of GDP.

Real GDP is a better measure of economic well-being than nominal GDP, because real GDP:

National income differs from net national product by an amount called:

If GDP (measured in billions of current dollars) is $5,465, consumption is $3,657, investment is $741, and government purchases are $1,098, then net exports are:

GDP is all of the following except the total:

There are a number of statistics computed to measure the price level, such as the GDP deflator and the CPI. The choice of which of these measures to use depends in many cases on the specific question in which you are interested. For each of the following situations, state whether the CPI or GDP deflator is a more appropriate measure to use and explain why the statistic is preferred. a. You are interested in looking at the impact of higher prices of imported oil in the overall cost of living. b. The government is interested in whether increases in defense spending are affecting the price level. c. An economic consulting firm is investigating the impact on the aggregate price level of more computers and electronic technology used in production.