Question 1

Use the following to answer questions: 
-(Table: Peanut Butter and Jelly Economy)  Use Table: Peanut Butter and Jelly Economy. How much of the increase in nominal GDP between 2010 and 2011 was due to inflation?

Accepted Answer

A)   31.25%
B)   18.75%
C)   12.5%
D)   4%E) A) and C)
F) A) and B)

Question 2

Economists frequently use GDP per capita to reflect:

Accepted Answer

A)   the impact of prices on GDP.
B)   differences in living standards across countries.
C)   people who are employed.
D)   both people who are employed and those who are unemployed.E) None of the above
F) B) and D)

Question 3

An intermediate good would be:

Accepted Answer

A)   a new boat to be used for vacations.
B)   lumber used to build a house.
C)   payments to military personnel.
D)   a professor's salary.E) A) and B)
F) C) and D)

Question 4

Use the following to answer questions: 
-(Figure 7-2: Expanded Circular-Flow Model)  Use Figure 7-2: Expanded Circular-Flow Model The flow of funds into and out of the rest of the world is:

Accepted Answer

A)   $30.
B)   $80.
C)   $160.
D)   $240.E) C) and D)
F) A) and B)

Question 5

Suppose that nominal GDP is $1,000 in 2009 and $1,500 in 2010. If the overall price level increased by _____% between 2009 and 2010, we could say that real GDP _____.

Accepted Answer

A)   50; stayed constant
B)   less than 50; decreased
C)   more than 50; increased
D)   50; increasedE) C) and D)
F) None of the above

Question 6

In the United States, consumer spending accounts for approximately _____% of GDP.

Accepted Answer

A)   50
B)   60
C)   70
D)   80E) A) and D)
F) A) and C)

Question 7

Use the following to answer questions: 
-(Figure 7-2: Expanded Circular-Flow Model)  Use Figure 7-2: Expanded Circular-Flow Model. What is GDP?

Accepted Answer

A)   $200
B)   $700
C)   $1,000
D)   $1,080E) All of the above
F) C) and D)

Question 8

Use the following to answer questions: 
-(Figure 7-1: Circular-Flow Model)  Use Figure 7-1: Circular-Flow Model. What is disposable income?

Accepted Answer

A)   $0
B)   $100
C)   $400
D)   $500E) B) and D)
F) B) and C)

Question 9

Use the following to answer questions: 
-(Table: Pizza Economy III)  Use Table: Pizza Economy III. Considering 2010 as the base year, given that total population was 1,140 in 2010 and 1,380 in 2011, real GDP per capita in 2010 was:

Accepted Answer

A)   $80.
B)   $53.
C)   $60.
D)   $100.E) A) and D)
F) A) and B)

Question 10

If both aggregate output and the aggregate price level increase:

Accepted Answer

A)   real GDP will increase faster than nominal GDP will.
B)   nominal GDP will increase faster than real GDP will.
C)   it makes no difference to real or nominal GDP.
D)   real GDP and nominal GDP will increase faster than the price level will.E) C) and D)
F) A) and C)

Question 11

Dividing real GDP by the population:

Accepted Answer

A)   results in consumption per capita.
B)   results in nominal GDP per capita.
C)   results in real GDP per capita.
D)   results in a measure of happiness.E) C) and D)
F) None of the above

Question 12

Use the following to answer questions: 
-(Table: Per Capita GDP)  Use Table: Per Capita GDP. The growth rate of per capita nominal GDP was:

Accepted Answer

A)   10%.
B)   20%.
C)   25%.
D)   33%.E) B) and D)
F) B) and C)

Question 13

Use the following to answer questions: 
-(Figure 7-2: Expanded Circular-Flow Model)  Use Figure 7-2: Expanded Circular-Flow Model The flow of funds into and out of financial markets is:

Accepted Answer

A)   $70.
B)   $110.
C)   $170.
D)   $300.E) A) and B)
F) A) and C)

Question 14

In the circular-flow diagram, firms:

Accepted Answer

A)   demand goods.
B)   demand services.
C)   supply resources.
D)   demand resources.E) A) and D)
F) B) and C)

Question 15

An increase in the value of nominal GDP over time:

Accepted Answer

A)   is always due to an increase in prices.
B)   is always due to an increase in the production of goods and services.
C)   may be due to an increase in prices, in the production of goods and services, or both.
D)   may be due to a decrease in prices, in the production of goods and services, or both.E) B) and C)
F) B) and D)

Question 16

In the United States, government spending accounts for approximately_____% of GDP.

Accepted Answer

A)   5
B)   10
C)   20
D)   30E) A) and D)
F) A) and C)

Question 17

In the circular-flow diagram, households:

Accepted Answer

A)   supply goods.
B)   supply services.
C)   buy resources.
D)   buy goods and services.E) All of the above
F) A) and D)

Question 18

GDP counts the dollar value of only final goods and services because:

Accepted Answer

A)   we can measure only the value of final goods and services, not the value of inputs.
B)   if we counted the value of all goods, we would count inputs, such as the value of steel in a new automobile, more than once.
C)   intermediate goods reduce GDP.
D)   only final goods and services matter for the economy.E) A) and B)
F) A) and C)

Question 19

Don is a builder and in his free time he has built an addition to his own house. This transaction will:

Accepted Answer

A)   not be included in GDP because it is not produced for the marketplace.
B)   be included in GDP because Don is a professional builder.
C)   not be included in GDP because it is an intermediate good.
D)   be included in GDP because building is Don's hobby.E) B) and C)
F) C) and D)

Question 20

Net exports are calculated by subtracting:

Accepted Answer

A)   imports from exports.
B)   exports from imports.
C)   out all intermediate goods.
D)   I, G, and value added from GDP.E) All of the above
F) B) and D)

Exam 7: GDP and the CPI: Tracking the Macroeconomy

Don is a builder and in his free time he has built an addition to his own house. This transaction will:

Correct AnswerverifiedShow Answer

Suppose that nominal GDP is $1,000 in 2009 and $1,500 in 2010. If the overall price level increased by _____% between 2009 and 2010, we could say that real GDP _____.

Correct AnswerverifiedShow Answer

GDP counts the dollar value of only final goods and services because:

Correct AnswerverifiedShow Answer

An intermediate good would be:

Correct AnswerverifiedShow Answer

In the circular-flow diagram, firms:

Correct AnswerverifiedShow Answer

An increase in the value of nominal GDP over time:

Correct AnswerverifiedShow Answer

Use the following to answer questions: -(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model The flow of funds into and out of the rest of the world is:

Correct AnswerverifiedShow Answer

Use the following to answer questions: -(Table: Pizza Economy III) Use Table: Pizza Economy III. Considering 2010 as the base year, given that total population was 1,140 in 2010 and 1,380 in 2011, real GDP per capita in 2010 was:

Correct AnswerverifiedShow Answer

Use the following to answer questions: -(Figure 7-1: Circular-Flow Model) Use Figure 7-1: Circular-Flow Model. What is disposable income?

Correct AnswerverifiedShow Answer

Economists frequently use GDP per capita to reflect:

Correct AnswerverifiedShow Answer

Use the following to answer questions: -(Table: Per Capita GDP) Use Table: Per Capita GDP. The growth rate of per capita nominal GDP was:

Correct AnswerverifiedShow Answer

If both aggregate output and the aggregate price level increase:

Correct AnswerverifiedShow Answer

In the United States, government spending accounts for approximately_____% of GDP.

Correct AnswerverifiedShow Answer

Use the following to answer questions: -(Table: Peanut Butter and Jelly Economy) Use Table: Peanut Butter and Jelly Economy. How much of the increase in nominal GDP between 2010 and 2011 was due to inflation?

Correct AnswerverifiedShow Answer

In the circular-flow diagram, households:

Correct AnswerverifiedShow Answer

Dividing real GDP by the population:

Correct AnswerverifiedShow Answer

In the United States, consumer spending accounts for approximately _____% of GDP.

Correct AnswerverifiedShow Answer

Net exports are calculated by subtracting:

Correct AnswerverifiedShow Answer

Use the following to answer questions: -(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model. What is GDP?

Correct AnswerverifiedShow Answer

Use the following to answer questions: -(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model The flow of funds into and out of financial markets is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Suppose that nominal GDP is $1,000 in 2009 and $1,500 in 2010. If the overall price level increased by _% between 2009 and 2010, we could say that real GDP _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified