A) negative during a recession. B) positive during an recession. C) negative if real GDP is below potential GDP. D) positive if real GDP is below potential GDP. E) positive during an expansion. A) negative during a recession. B) positive during an recession. C) negative if real GDP is below potential GDP. D) positive if real GDP is below potential GDP. E) positive during an expansion.

Exam 6: Up Around the Circular Flow: Gdp, Economic Growth, and Business Cycles

Reginald Rothchild buys $200 of blueberries while on vacation in Canada. Although Reginald is from England, this amount will be included in nominal GDP for Canada, not for England.

(True/False)

4.9/5

(41)

Question 21

Planners in Canukistan hope to double real GDP per person in 20 years. The Rule of 70 suggests that Canukistan needs an average growth rate of at least 3.5 percent per year.

(True/False)

4.9/5

(37)

Question 22

Nominal GDP can never be less than real GDP.

(True/False)

4.8/5

(37)

Question 23

If real GDP is $200 billion and the inflationary gap is $50 billion, potential GDP is $250 billion.

(True/False)

4.9/5

(37)

Question 24

The currency in Tinyland is called the Oscar. In 2015, nominal GDP was 600 Oscars. Real GDP was 500 constant Oscars. The population was 10 persons. The best measure of material well-being for 2015 is

(Multiple Choice)

4.8/5

(36)

Question 25

Alex paid her brother Andy $50 to buy a bottle of Cherry Whiskey liquor. Andy spends $40 on the liquor and keeps the remaining $10 for himself. These events cause nominal GDP to increase by

(Multiple Choice)

4.9/5

(40)

Question 26

An economy that experiences two or more consecutive quarters of decreases in real GDP is experiencing a(n)

(Multiple Choice)

4.9/5

(37)

Question 27

In Gagaland, real GDP is $200 billion and potential GDP is $160 billion. Gagaland has a(n)

(Multiple Choice)

4.8/5

(38)

Question 28

On-the-job training decreases human capital.

(True/False)

4.9/5

(35)

Question 29

Real GDP equals potential GDP when labour, capital, land/resources, and entrepreneurship are fully employed.

(True/False)

4.8/5

(37)

Question 30

In 2015, the country of Adanac produced 20 kilos of apples and 30 kilos of bananas. Both fruits were used only for final consumption and nothing else was produced. In 2015, a kilo of apples sold for $5 and a kilo of bananas sold for $10. Adanac's nominal GDP in 2015 was $400.

(True/False)

4.7/5

(45)

Question 31

Real GDP is a better measure of economic well-being than real GDP per person.

(True/False)

4.8/5

(39)

Question 32

An output gap is

(Multiple Choice)

4.7/5

(32)

Question 33

A macro production possibilities frontier shifts when there is a change in the technology.

(True/False)

4.7/5

(37)

Question 34

Real GDP can never be less than nominal GDP.

(True/False)

4.8/5

(34)

Question 35

In the first quarter of 2009, real GDP was $1292 billion and potential GDP was $1331 billion (both measured in 2002 dollars). This was a recessionary gap.

(True/False)

4.8/5

(44)

Question 36

Government transfers are like negative taxes.

(True/False)

5.0/5

(32)

Question 37

Increases in real GDP per person can come from

(Multiple Choice)

4.9/5

(41)

Question 38

In Beyonceland, real GDP fell continuously from $200 billion in 2015 to $160 billion in 2016. Potential GDP remained constant at $180 billion. Between 2015 and 2016, Beyonceland

(Multiple Choice)

4.8/5

(41)

Question 39

Suppose Angela falls in love with and then marries her regularly employed housekeeper, Tony. What effect must this have on GDP?

(Multiple Choice)

4.8/5

(37)

Question 40

Showing 21 - 40 of 277

Reginald Rothchild buys $200 of blueberries while on vacation in Canada. Although Reginald is from England, this amount will be included in nominal GDP for Canada, not for England.

Planners in Canukistan hope to double real GDP per person in 20 years. The Rule of 70 suggests that Canukistan needs an average growth rate of at least 3.5 percent per year.

Nominal GDP can never be less than real GDP.

If real GDP is $200 billion and the inflationary gap is $50 billion, potential GDP is $250 billion.

The currency in Tinyland is called the Oscar. In 2015, nominal GDP was 600 Oscars. Real GDP was 500 constant Oscars. The population was 10 persons. The best measure of material well-being for 2015 is

Alex paid her brother Andy $50 to buy a bottle of Cherry Whiskey liquor. Andy spends $40 on the liquor and keeps the remaining $10 for himself. These events cause nominal GDP to increase by

An economy that experiences two or more consecutive quarters of decreases in real GDP is experiencing a(n)

In Gagaland, real GDP is $200 billion and potential GDP is $160 billion. Gagaland has a(n)

On-the-job training decreases human capital.

Real GDP equals potential GDP when labour, capital, land/resources, and entrepreneurship are fully employed.

In 2015, the country of Adanac produced 20 kilos of apples and 30 kilos of bananas. Both fruits were used only for final consumption and nothing else was produced. In 2015, a kilo of apples sold for $5 and a kilo of bananas sold for $10. Adanac's nominal GDP in 2015 was $400.

Real GDP is a better measure of economic well-being than real GDP per person.

An output gap is

A macro production possibilities frontier shifts when there is a change in the technology.

Real GDP can never be less than nominal GDP.

In the first quarter of 2009, real GDP was $1292 billion and potential GDP was $1331 billion (both measured in 2002 dollars). This was a recessionary gap.

Government transfers are like negative taxes.

Increases in real GDP per person can come from

In Beyonceland, real GDP fell continuously from $200 billion in 2015 to $160 billion in 2016. Potential GDP remained constant at $180 billion. Between 2015 and 2016, Beyonceland

Suppose Angela falls in love with and then marries her regularly employed housekeeper, Tony. What effect must this have on GDP?

Whats in Economics for You Scarcity, Opportunity Cost, Trade, and Models

Making Smart Choices: the Law of Demand

Show Me the Money: the Law of Supply

Coordinating Smart Choices: Demand and Supply

Are Your Smart Choices Smart for All Macroeconomics and Microeconomics

Costs of Not Working and Living: Unemployment and Inflation

Skating to Where the Puck Is Going: Aggregate Supply and Aggregate Demand

Money Is for Lunatics: Demanders and Suppliers of Money

Trading Dollars for Dollars Exchange Rates and Payments With the Rest of the World

Steering Blindly Monetary Policy and the Bank of Canada

Spending Others Money: Fiscal Policy, Deficits, and National Debt

Are Sweatshops All Bad Globalization and Trade Policy

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