Question 1

In 2015, government transfer payments accounted for about ________ of government spending.

Accepted Answer

A)   one-half
B)   one-third
C)   68 percent
D)   three-fifths
E)   100 percentF) A) and C)
G) A) and E)

Question 2

Refer to the following table when answering the following questions.
Table 2.4: U.S. and Eurozone (18 Economies)  Nominal GDP in 2015 
-Consider Table 2.4. The value of eurozone nominal GDP in U.S. dollars is ________ billion.

Accepted Answer

A)   $13,531
B)   $9,505
C)   $11,501
D)   $16,396
E)   $21,219F) D) and E)
G) A) and E)

Question 3

Refer to the following table when answering the following questions.
Table 2.4: U.S. and Eurozone (18 Economies)  Nominal GDP in 2015 
-Consider Table 2.4. The value of the eurozone nominal GDP in U.S. dollars adjusted for price differences is ________ billion.

Accepted Answer

A)   $9,775
B)   $13,530
C)   $11,182
D)   $8,079
E)   $16,863F) A) and B)
G) C) and D)

Question 4

Real GDP is given by ________, where the price level is the ________.

Accepted Answer

A)   Real GDP =Nominal GDP ｴ Price level; CPI
B)   Real GDP = Nominal GDP ｸ Price level; GDP deflator
C)   Real GDP= Nominal GDP -Price level; GDP deflator
D)   Real GDP = Nominal GDP -Price level; GDP deflator
E)   Real GDP =Nominal GDP ｸ Price level; CPIF) B) and C)
G) A) and E)

Question 5

Nominal GDP is given by ________, where the price level is the ________.

Accepted Answer

A)   Nominal GDP =Price level ｴ Real GDP; GDP deflator
B)   Nominal GDP = Price level ｸ Real GDP; GDP deflator
C)   Nominal GDP = Price level +Real GDP; CPI
D)   Nominal GDP = Price level- Real GDP; GDP deflator
E)   Nominal GDP = Price level ｴ Real GDP; CPIF) None of the above
G) All of the above

Question 6

If we calculate the real GDP using the initial period's prices, we are using a ________ index. If, instead, we use the final period's prices, we are using a ________ index.

Accepted Answer

A)   Paasche; chain-weighted
B)   Laspeyres; chain-weighted
C)   Laspeyres; Paasche
D)   Paasche; Laspeyres
E)   chain-weighted; FisherF) B) and C)
G) A) and B)

Question 7

If the nominal GDP rises by 5 percent and the price level falls by 2 percent, the real GDP falls by 7 percent.

Accepted Answer

A) True 
 B)False

Question 8

In the income approach to GDP, fixed capital depreciation is defined as the after-tax profits of a firm.

Accepted Answer

A) True 
 B)False

Question 9

In 2015, household expenditures accounted for about ________ percent of total GDP.

Accepted Answer

A)   50
B)   68
C)   45
D)   76
E)   13F) A) and B)
G) B) and D)

Question 10

To get an accurate view of how GDPs differ across countries, we simply need to convert all countries' GDPs into dollars using the prevailing exchange rate.

Accepted Answer

A) True 
 B)False

Question 11

The percent change in the nominal GDP is given as:

Accepted Answer

A)   percent change in the price level + percent change in real GDP.
B)   percent change in the price level -percent change in real GDP.
C)   percent change in the price level ｴ percent change in real GDP.
D)   percent change in the price level ｸ percent change in real GDP.
E)   price level ｴ percent change in real GDP.F) A) and B)
G) None of the above

Question 12

Identify which of the following goods are part of the current year's U.S. GDP and which are considered the current year's U.S. gross national product (GNP); explain. (Note: Ford is a company owned by U.S. citizens and Toyota is a company owned by Japanese citizens.)
(a) a Ford produced in Mexico
(b) a Toyota produced in California
(c) a meal you make for a dinner party
(d) an American-made vintage T-shirt from Led Zeppelin's 1971 North American tour you bought online last week

Accepted Answer

(a) It is part of U.S. GNP but not GDP a...

Question 13

When calculating the real GDP using the Laspeyres index, we use the final period's prices.

Accepted Answer

A) True 
 B)False

Question 14

Since about ________, U.S. expenditure shares by households, firms, and the government have been relatively ________.

Accepted Answer

A)   1939; constant
B)   the Great Depression era; constant
C)   1950; variable
D)   1950; constant
E)   1945; constantF) C) and D)
G) A) and B)

Question 15

The statistic used by economists to measure the value of economic output is:

Accepted Answer

A)   the unemployment rate.
B)   GDP.
C)   the CPI.
D)   the GDP deflator.
E)   the federal funds rate.F) None of the above
G) A) and C)

Question 16

Refer to the following table when answering the following questions.
Table 2.2: U.S. 2014-2015 Domestic Income ($ billions)  
-Consider Table 2.2. From this data, total net domestic product in 2014 was about ________ billion.

Accepted Answer

A)   $14,906
B)   $10,384
C)   $17,651
D)   $9,207
E)   $14,754F) C) and D)
G) A) and B)

Question 17

Refer to the following table when answering the following questions. In this economy, only two goods are produced: video games and pistachios.
Table 2.3: National Income Accounting 
-Consider Table 2.3. Using the Laspeyres index, the percent change in real GDP was about:

Accepted Answer

A)   6 percent.
B)   5 percent.
C)   0 percent.
D)   1 percent.
E)   Not enough information is given.F) B) and E)
G) C) and E)

Question 18

During the 1940s, ________ increased sharply as a percentage of U.S. GDP because of ________.

Accepted Answer

A)   government expenditure; World War II
B)   residential investment; the war on poverty
C)   nonresidential investment; the space program
D)   durable consumption expenditures; rationing of nondurable goods
E)   transfer payments; the New DealF) A) and E)
G) B) and C)

Question 19

What is real GDP? Why do we calculate real GDP? What are the shortcomings of real GDP?

Accepted Answer

Real GDP is the value of all goods and s...

Question 20

In 2015, net exports accounted for about ________ percent of total GDP.

Accepted Answer

A)   -3
B)   13
C)   20
D)   100
E)   -14F) A) and B)
G) None of the above

Exam 2: Measuring the Macroeconomy

Real GDP is given by , where the price level is the .

Correct Answer
verified

Refer to the following table when answering the following questions. Table 2.2: U.S. 2014-2015 Domestic Income ($ billions) -Consider Table 2.2. From this data, total net domestic product in 2014 was about ________ billion.

Correct Answer
verified

What is real GDP? Why do we calculate real GDP? What are the shortcomings of real GDP?

Correct Answer
verified
Real GDP is the value of all goods and s...
View Answer

To get an accurate view of how GDPs differ across countries, we simply need to convert all countries' GDPs into dollars using the prevailing exchange rate.

Correct Answer
verified

The statistic used by economists to measure the value of economic output is:

Correct Answer
verified

If the nominal GDP rises by 5 percent and the price level falls by 2 percent, the real GDP falls by 7 percent.

Correct Answer
verified

During the 1940s, increased sharply as a percentage of U.S. GDP because of .

Correct Answer
verified

In 2015, government transfer payments accounted for about ________ of government spending.

Correct Answer
verified

In 2015, net exports accounted for about ________ percent of total GDP.

Correct Answer
verified

Since about , U.S. expenditure shares by households, firms, and the government have been relatively .

Correct Answer
verified

When calculating the real GDP using the Laspeyres index, we use the final period's prices.

Correct Answer
verified

Correct Answer
verified
(a) It is part of U.S. GNP but not GDP a...
View Answer

Refer to the following table when answering the following questions. Table 2.4: U.S. and Eurozone (18 Economies) Nominal GDP in 2015 -Consider Table 2.4. The value of the eurozone nominal GDP in U.S. dollars adjusted for price differences is ________ billion.

Correct Answer
verified

In 2015, household expenditures accounted for about ________ percent of total GDP.

Correct Answer
verified

If we calculate the real GDP using the initial period's prices, we are using a index. If, instead, we use the final period's prices, we are using a index.

Correct Answer
verified

Nominal GDP is given by , where the price level is the .

Correct Answer
verified

Refer to the following table when answering the following questions. Table 2.4: U.S. and Eurozone (18 Economies) Nominal GDP in 2015 -Consider Table 2.4. The value of eurozone nominal GDP in U.S. dollars is ________ billion.

Correct Answer
verified

The percent change in the nominal GDP is given as:

Correct Answer
verified

In the income approach to GDP, fixed capital depreciation is defined as the after-tax profits of a firm.

Correct Answer
verified

Refer to the following table when answering the following questions. In this economy, only two goods are produced: video games and pistachios. Table 2.3: National Income Accounting -Consider Table 2.3. Using the Laspeyres index, the percent change in real GDP was about:

Correct Answer
verified

Exam 2: Measuring the Macroeconomy

Real GDP is given by ________, where the price level is the ________.

Correct AnswerverifiedShow Answer

Refer to the following table when answering the following questions. Table 2.2: U.S. 2014-2015 Domestic Income ($ billions) -Consider Table 2.2. From this data, total net domestic product in 2014 was about ________ billion.

Correct AnswerverifiedShow Answer

What is real GDP? Why do we calculate real GDP? What are the shortcomings of real GDP?

Correct AnswerverifiedReal GDP is the value of all goods and s...View AnswerShow Answer

To get an accurate view of how GDPs differ across countries, we simply need to convert all countries' GDPs into dollars using the prevailing exchange rate.

Correct AnswerverifiedShow Answer

The statistic used by economists to measure the value of economic output is:

Correct AnswerverifiedShow Answer

If the nominal GDP rises by 5 percent and the price level falls by 2 percent, the real GDP falls by 7 percent.

Correct AnswerverifiedShow Answer

During the 1940s, ________ increased sharply as a percentage of U.S. GDP because of ________.

Correct AnswerverifiedShow Answer

In 2015, government transfer payments accounted for about ________ of government spending.

Correct AnswerverifiedShow Answer

In 2015, net exports accounted for about ________ percent of total GDP.

Correct AnswerverifiedShow Answer

Since about ________, U.S. expenditure shares by households, firms, and the government have been relatively ________.

Correct AnswerverifiedShow Answer

When calculating the real GDP using the Laspeyres index, we use the final period's prices.

Correct AnswerverifiedShow Answer

Correct Answerverified(a) It is part of U.S. GNP but not GDP a...View AnswerShow Answer

Refer to the following table when answering the following questions. Table 2.4: U.S. and Eurozone (18 Economies) Nominal GDP in 2015 -Consider Table 2.4. The value of the eurozone nominal GDP in U.S. dollars adjusted for price differences is ________ billion.

Correct AnswerverifiedShow Answer

In 2015, household expenditures accounted for about ________ percent of total GDP.

Correct AnswerverifiedShow Answer

If we calculate the real GDP using the initial period's prices, we are using a ________ index. If, instead, we use the final period's prices, we are using a ________ index.

Correct AnswerverifiedShow Answer

Nominal GDP is given by ________, where the price level is the ________.

Correct AnswerverifiedShow Answer

Refer to the following table when answering the following questions. Table 2.4: U.S. and Eurozone (18 Economies) Nominal GDP in 2015 -Consider Table 2.4. The value of eurozone nominal GDP in U.S. dollars is ________ billion.

Correct AnswerverifiedShow Answer

The percent change in the nominal GDP is given as:

Correct AnswerverifiedShow Answer

In the income approach to GDP, fixed capital depreciation is defined as the after-tax profits of a firm.

Correct AnswerverifiedShow Answer

Refer to the following table when answering the following questions. In this economy, only two goods are produced: video games and pistachios. Table 2.3: National Income Accounting -Consider Table 2.3. Using the Laspeyres index, the percent change in real GDP was about:

Correct AnswerverifiedShow Answer

Real GDP is given by , where the price level is the .

Correct Answer
verified

Correct Answer
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Correct Answer
verified
Real GDP is the value of all goods and s...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

During the 1940s, increased sharply as a percentage of U.S. GDP because of .

Correct Answer
verified

Correct Answer
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Correct Answer
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Since about , U.S. expenditure shares by households, firms, and the government have been relatively .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
(a) It is part of U.S. GNP but not GDP a...
View Answer

Correct Answer
verified

Correct Answer
verified

If we calculate the real GDP using the initial period's prices, we are using a index. If, instead, we use the final period's prices, we are using a index.

Correct Answer
verified

Nominal GDP is given by , where the price level is the .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified