Question 1

Computing the CPI is important because it provides ________.

Accepted Answer

A)  a rough measure of the cost of living 
B)  it is used as a benchmark in labor negotiations 
C)  government uses it to index entitlements, such as social security benefits, so that beneficiaries do not lose purchasing power in periods of inflation 
D)  all of the above 
E)  none of the above 
A)  a rough measure of the cost of living 
B)  it is used as a benchmark in labor negotiations 
C)  government uses it to index entitlements, such as social security benefits, so that beneficiaries do not lose purchasing power in periods of inflation 
D)  all of the above 
E)  none of the above

Question 2

In a country with unusually high tax rates, one might expect that ________.

Accepted Answer

A)  GDP might be overstated because the government might avoid running surpluses 
B)  GDP might be understated because its citizens might avoid reporting some of their income 
C)  GDP might be overstated because the government might raise its outlays 
D)  GDP might be understated because its citizens might flee the country 
E)  after tax income should be much higher than that of countries with lower tax rates 
A)  GDP might be overstated because the government might avoid running surpluses 
B)  GDP might be understated because its citizens might avoid reporting some of their income 
C)  GDP might be overstated because the government might raise its outlays 
D)  GDP might be understated because its citizens might flee the country 
E)  after tax income should be much higher than that of countries with lower tax rates

Question 3

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

Accepted Answer

A)  154.8 million 
B)  139.5 million 
C)  237.4 million 
D)  222.1 million 
E)  none of the above 
A)  154.8 million 
B)  139.5 million 
C)  237.4 million 
D)  222.1 million 
E)  none of the above

Question 4

The reason only newly produced goods and services are counted in GDP is that ________.

Accepted Answer

A)  it is very difficult to input a value to used goods 
B)  most expenditures on used goods and services take place outside the market 
C)  it does not help economists make better economic predictions because second-hand goods rarely have any residual value 
D)  it allows economists to avoid double counting the production of goods and services 
E)  none of the above 
A)  it is very difficult to input a value to used goods 
B)  most expenditures on used goods and services take place outside the market 
C)  it does not help economists make better economic predictions because second-hand goods rarely have any residual value 
D)  it allows economists to avoid double counting the production of goods and services 
E)  none of the above

Question 5

Nominal GDP =________ where the price level is the ________.

Accepted Answer

A)  Price level ÷ Real GDP; GDP deflator 
B)  Price level × Real GDP; CPI 
C)  Price level ÷ Real GDP; CPI 
D)  Price level × Real GDP; GDP deflator 
E)  none of the above 
A)  Price level ÷ Real GDP; GDP deflator 
B)  Price level × Real GDP; CPI 
C)  Price level ÷ Real GDP; CPI 
D)  Price level × Real GDP; GDP deflator 
E)  none of the above

Computing the CPI is important because it provides ________.

In a country with unusually high tax rates, one might expect that ________.

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

The reason only newly produced goods and services are counted in GDP is that ________.

Nominal GDP = where the price level is the .

The Policy and Practice of Macroeconomics

Aggregate Production and Productivity

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, Policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

Aggregate Supply and the Phillips Curve

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, Employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

Filters

Exam 2: Measuring Macroeconomic Data

Computing the CPI is important because it provides ________.

In a country with unusually high tax rates, one might expect that ________.

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

The reason only newly produced goods and services are counted in GDP is that ________.

Nominal GDP =________ where the price level is the ________.

The Policy and Practice of Macroeconomics

Aggregate Production and Productivity

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, Policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

Aggregate Supply and the Phillips Curve

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, Employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

Filters

Nominal GDP = where the price level is the .