Exam 2: Measuring Macroeconomic Data

The inflation rate = ________.

To avoid double counting in the calculation of GDP, which types of goods are typically excluded from the calculation?

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

All income, production, and expenditure variables that are measured at current market prices are referred to as ________.

Who helps calculate GDP in the United States?

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

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

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

The production approach to measuring GDP requires ________.

The household and establishment surveys sometimes differ on the labor market conditions. This is probably because ________.

To compute the CPI, the Bureau of Labor Statistics (BLS) compiles a "basket of goods" that ________; each price in the index is weighted by ________.

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

The unemployment rate that is typically reported in the media is ________.

Figure 2.5 -According to Figure 2.5, the United States civilian employment ratio in April 2010 was ________.

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

The Fisher equation implies that an increase in the nominal rate of interest relative to the real rate indicates that ________.

-Assuming that the GDP breakdown shown in Table 2.1 is typical of a given year in the U.S. we can say that ________.

Which of the following is included in the calculation of national income?

There are different interest rates associated with many types of securities. Which of the following statements is correct?

Consider a firm whose final output (and sales) in a particular year has a value of $1,200. To produce these goods, the firm used $500 worth of intermediate goods it had purchased in previous years plus $200 worth of newly-purchased intermediate goods. In the subsequent year, this same firm again sells $1,200 worth of final goods, but in this year has purchased $700 worth of intermediate goods, of which $100 is not used in current production but, rather, added to the firm's inventory. For each of these two years, calculate the value added by this firm. For each of these two years, calculate the contribution of this firm to the economy's GDP.