Question 1

If Croatia's price level is higher than the U.S. price level, Croatia's dollar-denominated GDP, calculated using price adjustments, will appear smaller than if simply calculated with the exchange rate.

Accepted Answer

A) True 
 B)False

Question 2

If we want to calculate the Mexican real GDP in U.S. dollars but adjusted for prices, which of the following would we use?

Accepted Answer

A)   
B)   
C)   
D)   
E)   None of these answers is correct.F) A) and E)
G) B) and E)

Question 3

In the past 60 years or so, labor's share of GDP in the United States ________.

Accepted Answer

A)   has been roughly two-thirds.
B)   has been exactly 50 percent.
C)   has been roughly one-third.
D)   has been equal to capital's income share.
E)   has risen sharply.F) A) and E)
G) None of the above

Question 4

If the percent change in real GDP is found to be 4 percent using the Laspeyres index and 3 percent using the Paasche index, the chain-weighted price index will give us a growth rate of 3.5 percent.

Accepted Answer

A) True 
 B)False

Question 5

Real gross domestic product is defined as the value of all goods:

Accepted Answer

A)   and services produced by an economy, within its borders, over a period of time, at base-year prices.
B)   and services produced by an economy, within its borders, over a period of time, at current prices.
C)   produced by an economy, within its borders, over a period of time, at current prices.
D)   and services produced by an economy's citizens, regardless of where they live, over a period of time, at current prices.
E)   and services produced by an economy's citizens, regardless of where they live, over a period of time, at base-year prices.F) B) and E)
G) D) and E)

Question 6

Real GDP is the ________ of all goods and services produced in a period of time using ________ prices.

Accepted Answer

A)   summation; current
B)   value; base-year
C)   value; 1970
D)   value; 1945
E)   summation; base-yearF) A) and C)
G) A) and E)

Question 7

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 real GDP in 2017 is:

Accepted Answer

A)   $8,900.
B)   $8,500.
C)   $1,500.
D)   $15,500.
E)   $9,150.F) A) and E)
G) All of the above

Question 8

To get a more accurate view of the size of countries' economies, we first need to convert each country's GDP to the dollar using ________ and then adjust for ________.

Accepted Answer

A)   the interest rate; the exchange rate
B)   the exchange rate; price level differences
C)   price level differences; the interest rate
D)   the exchange rate; fiscal policy
E)   fiscal policy; the exchange rateF) A) and D)
G) A) and C)

Question 9

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 Paasche index, the real GDP in 2018 is:

Accepted Answer

A)   $9,150.
B)   $8,500.
C)   $8,600.
D)   $9,025.
E)   $8,475.F) D) and E)
G) All of the above

Question 10

Which of the following are included in the expenditure approach to national income accounting?

Accepted Answer

A)   defense expenditures
B)   firm expenditures on equipment
C)   residential expenditures
D)   household service expenditures
E)   All of these answers are correct.F) B) and D)
G) A) and B)

Question 11

The largest GDP expenditure share historically has been government expenditure.

Accepted Answer

A) True 
 B)False

Question 12

Who led the team that created the original National Income and Product Accounts in the 1930s?

Accepted Answer

A)   John M. Keynes
B)   Paul A. Samuelson
C)   William D. Nordhaus
D)   Simon Kuznets
E)   Milton FriedmanF) A) and B)
G) C) and D)

Question 13

Which of the following counts toward changes in the current GDP?

Accepted Answer

A)   You find $10 on the sidewalk.
B)   You purchase a used stereo from a friend.
C)   The government builds a new highway.
D)   You fix your own sink.
E)   None of these answers is correct.F) B) and C)
G) C) and E)

Question 14

By how much does the current GDP rise in the following scenario? A real estate agent sells a house for $250,000 that the previous owners had purchased 10 years earlier for $90,000. The real estate agent earns a commission of $10,000.

Accepted Answer

A)   $160,000
B)   $250,000
C)   $10,000
D)   $90,000
E)   $260,000F) All of the above
G) A) and C)

Question 15

Which measure of overall economic activity was NOT available in the 1930s?

Accepted Answer

A)   stock prices
B)   GDP
C)   industrial production
D)   steel production
E)   gold pricesF) C) and D)
G) C) and E)

Question 16

If you own your own home, National Accounts uses ________ to measure the value of your home.

Accepted Answer

A)   the geometric mean of the highest- and lowest-priced houses in your neighborhood
B)   the original purchase price
C)   an estimated price of your house based on current market conditions
D)   "rental equivalents"
E)   the value of your home to your insurance carrierF) All of the above
G) A) and C)

Question 17

Household consumption as a share of GDP ________ and investment's share ________ between 2010 and 2015.

Accepted Answer

A)   decreased; increased
B)   stayed the same; increased
C)   decreased; stayed the same
D)   increased; decreased
E)   stayed the same; stayed the sameF) C) and D)
G) A) and D)

Question 18

According to the expenditure approach, if Y is GDP, C is consumption, I is investment, G is government purchases, and NX is net exports, which of the following is the national income identity?

Accepted Answer

A)   
B)   
C)   
D)   
E)   F) None of the above
G) A) and B)

Question 19

In 2012, consumption expenditures accounted for over 70 percent of the total GDP.

Accepted Answer

A) True 
 B)False

Question 20

Nominal GDP means that the value of all goods and services is measured in ________ prices.

Accepted Answer

A)   average
B)   last year's
C)   the base year's
D)   current
E)   constantF) None of the above
G) A) and D)

Exam 2: Measuring the Macroeconomy

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 Paasche index, the real GDP in 2018 is:

Correct AnswerverifiedShow Answer

Which measure of overall economic activity was NOT available in the 1930s?

Correct AnswerverifiedShow Answer

Who led the team that created the original National Income and Product Accounts in the 1930s?

Correct AnswerverifiedShow Answer

Household consumption as a share of GDP ________ and investment's share ________ between 2010 and 2015.

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 real GDP in 2017 is:

Correct AnswerverifiedShow Answer

In the past 60 years or so, labor's share of GDP in the United States ________.

Correct AnswerverifiedShow Answer

If we want to calculate the Mexican real GDP in U.S. dollars but adjusted for prices, which of the following would we use?

Correct AnswerverifiedShow Answer

According to the expenditure approach, if Y is GDP, C is consumption, I is investment, G is government purchases, and NX is net exports, which of the following is the national income identity?

Correct AnswerverifiedShow Answer

If you own your own home, National Accounts uses ________ to measure the value of your home.

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Real GDP is the ________ of all goods and services produced in a period of time using ________ prices.

Correct AnswerverifiedShow Answer

Real gross domestic product is defined as the value of all goods:

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Which of the following are included in the expenditure approach to national income accounting?

Correct AnswerverifiedShow Answer

Nominal GDP means that the value of all goods and services is measured in ________ prices.

Correct AnswerverifiedShow Answer

To get a more accurate view of the size of countries' economies, we first need to convert each country's GDP to the dollar using ________ and then adjust for ________.

Correct AnswerverifiedShow Answer

If the percent change in real GDP is found to be 4 percent using the Laspeyres index and 3 percent using the Paasche index, the chain-weighted price index will give us a growth rate of 3.5 percent.

Correct AnswerverifiedShow Answer

The largest GDP expenditure share historically has been government expenditure.

Correct AnswerverifiedShow Answer

In 2012, consumption expenditures accounted for over 70 percent of the total GDP.

Correct AnswerverifiedShow Answer

If Croatia's price level is higher than the U.S. price level, Croatia's dollar-denominated GDP, calculated using price adjustments, will appear smaller than if simply calculated with the exchange rate.

Correct AnswerverifiedShow Answer

By how much does the current GDP rise in the following scenario? A real estate agent sells a house for $250,000 that the previous owners had purchased 10 years earlier for $90,000. The real estate agent earns a commission of $10,000.

Correct AnswerverifiedShow Answer

Which of the following counts toward changes in the current GDP?

Correct AnswerverifiedShow Answer

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Household consumption as a share of GDP and investment's share between 2010 and 2015.

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Real GDP is the of all goods and services produced in a period of time using prices.

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To get a more accurate view of the size of countries' economies, we first need to convert each country's GDP to the dollar using and then adjust for .

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