Question 1

A good produced in 2009 and held in inventory until it is sold in 2010 would be included in which measure of GDP?

Accepted Answer

A)  Half the value in 2009 and half the value in 2010 
B)  In 2010 GDP 
C)  In both 2009 and 2010 GDP 
D)  In 2009 GDP

Question 2

In 2001 the United States and its NATO allies dropped millions of dollars' worth of bombs on Afghanistan.These bombs and the aircraft from which they were dropped

Accepted Answer

A)  were netted out of GDP. 
B)  increased GDP and increased personal welfare. 
C)  decreased GDP and decreased personal welfare. 
D)  were added to GDP.

Question 3

From the end of World War II until the present,the price level has

Accepted Answer

A)  slowly fallen over time. 
B)  fluctuated around a downward trend. 
C)  remained stable throughout the period. 
D)  fluctuated around an upward trend.

Question 4

In terms of macroeconomic conditions,the 1930s were the "good old days."

Accepted Answer

A) True 
 B)False

Question 5

Combating recession may require the government to

Accepted Answer

A)  decrease aggregate supply. 
B)  increase aggregate demand. 
C)  decrease aggregate demand. 
D)  decrease government spending.

Question 6

Recessions

Accepted Answer

A)  almost never occur in the American economy. 
B)  follow a regular and predictable cycle. 
C)  are common features of the American economy. 
D)  have been abolished by wise macroeconomic policy.

Question 7

Does GDP for a particular year include items produced in a previous year?

Accepted Answer

A)  Nominal GDP will not and real GDP will 
B)  Real GDP will and nominal GDP will not 
C)  Yes for both nominal and real GDP 
D)  No for both nominal and real GDP

Question 8

The movements of real GDP and inflation during the 1973-1975 recession can be best explained by a:

Accepted Answer

A)  rightward shift of the aggregate demand curve. 
B)  leftward shift of the aggregate demand curve. 
C)  rightward shift of the aggregate supply curve. 
D)  leftward shift of the aggregate supply curve.

Question 9

If aggregate demand shifts outward over a long period of time,with aggregate supply held constant,the economy should experience

Accepted Answer

A)  unemployment. 
B)  recession. 
C)  budget surpluses. 
D)  inflation.

Question 10

If aggregate demand shifts outward,the result will be inflation.

Accepted Answer

A) True 
 B)False

Question 11

Nominal GDP is

Accepted Answer

A)  also called real GDP. 
B)  a more accurate measure than real GDP. 
C)  real GDP adjusted for changes in the price level. 
D)  GDP measured in current prices.

Question 12

Macroeconomics stresses

Accepted Answer

A)  resource allocation and income distribution. 
B)  inflation and unemployment. 
C)  resource allocation and inflation. 
D)  unemployment and income distribution.

Question 13

Trish grows oregano in her backyard to use in her homemade pesto sauce.How is this gardening included in GDP?

Accepted Answer

A)  It is included in real GDP. 
B)  It is included in nominal GDP. 
C)  It is not included in GDP. 
D)  It is included as an intermediate good.

Question 14

Corrected for inflation,the real GDP was only about _____ times greater in 2014 than in 1959.

Accepted Answer

A)  ​3.1 
B)  ​5.3 
C)  ​6.7 
D)  ​11.2

Question 15

A product that is produced in 2015 and not sold until 2016 will be counted in the GDP for

Accepted Answer

A)  both 2015 and 2016. 
B)  neither 2015 nor 2016. 
C)  2015. 
D)  2016.

Question 16

What are intermediate goods? Why do economists exclude the value of intermediate goods while calculating national income?

Accepted Answer

The answer of What are intermediate goods? Why do economists...

Question 17

Production for war and environmental clean-up services are not included in GDP.

Accepted Answer

A) True 
 B)False

Question 18

In the United States,GDP has grown slower than the population since 1870.

Accepted Answer

A) True 
 B)False

Question 19

In contrast to the typical Republican Party laissez-faire policies,President Richard Nixon in 1971 introduced

Accepted Answer

A)  mandatory drug testing of cabinet officers. 
B)  monetary targets for the Federal Reserve Board. 
C)  wage and price controls. 
D)  mandatory gold purchases by the U.S.Treasury.

Question 20

In contrast to the post-World War II period,before 1940 the government

Accepted Answer

A)  actively intervened in the economy for stabilization purposes. 
B)  used aggregate demand management to avoid recessions. 
C)  rarely intervened in the economy to influence inflation or unemployment rates. 
D)  used government ownership to guarantee full employment.

Exam 5: An Introduction To Macroeconomics

A good produced in 2009 and held in inventory until it is sold in 2010 would be included in which measure of GDP?

In 2001 the United States and its NATO allies dropped millions of dollars' worth of bombs on Afghanistan.These bombs and the aircraft from which they were dropped

From the end of World War II until the present,the price level has

In terms of macroeconomic conditions,the 1930s were the "good old days."

Combating recession may require the government to

Recessions

Does GDP for a particular year include items produced in a previous year?

The movements of real GDP and inflation during the 1973-1975 recession can be best explained by a:

If aggregate demand shifts outward over a long period of time,with aggregate supply held constant,the economy should experience

If aggregate demand shifts outward,the result will be inflation.

Nominal GDP is

Macroeconomics stresses

Trish grows oregano in her backyard to use in her homemade pesto sauce.How is this gardening included in GDP?

Corrected for inflation,the real GDP was only about _____ times greater in 2014 than in 1959.

A product that is produced in 2015 and not sold until 2016 will be counted in the GDP for

What are intermediate goods? Why do economists exclude the value of intermediate goods while calculating national income?

Production for war and environmental clean-up services are not included in GDP.

In the United States,GDP has grown slower than the population since 1870.

In contrast to the typical Republican Party laissez-faire policies,President Richard Nixon in 1971 introduced

In contrast to the post-World War II period,before 1940 the government