Macroeconomics 2301

At the end of 2012 the prestigious Rolex watch manufacturer had in inventory of watches worth $777 million dollars. In 2013, Rolex produced $269 million worth of watches and sold $348 million. What was the change in inventories in 2013? (hint: careful with the signs, remember that this number can be positive or negative).

-79

Volkswagen company is Germany own company with a massive factory in Mexico. In 2013, the Volkswagen Mexican factory produced $312 million worth of cars and sold $64 million to the U.S. and $53 million to Mexico. How much was added to Gemany's GDP?

0

Year Nominal GDP Price Level 1,995 417 37 2,000 733 65 2,007 2,087 125 2,012 3,230 164 Using the information in the table above. What is the Real GDP for the year 2,007 using 2,000 as the base year?

1,085.24

Year Nominal GDP Price Level 1,998 278 31 2,001 1,106 86 2,007 1,956 130 2,012 3,153 165 Using the information in the table above. What is the Real GDP for the year 1,998 using 2,012 as the base year?

1,479.68

If in some year nominal GDP was $1,201 and the GDP deflator was 78, what was real GDP?

1,539.74

The followig table shows data for the country of Endoor Household purchases of durable goods $3,215 Salaries of government workers $2,603 Federal government expenditure on roads $3,614 Domestic purchases of foreign goods $1,397 Changes in inventory $1,157 Unemployment benefits paid by the federal government $2,292 Household purchases of services $5,045 Foreign purchases of domestically produced goods $3,731 Purchases of machinery and equipment by firms $853 Local government expenditure on bridges $458 Welfare payments to households $1,395 Household purchases of nondurable goods $3,746 What are net exports in Endoor?

2,334

In the economy of Onkor in 1962 exports were $16, GDP was $356, imports were $0, government spending was $54 and consumption was $30. What was Onkor investment in 1962?

256

Household purchases of durable goods $3,203 Salaries of government workers $3,801 Federal government expenditure on roads $3,592 Domestic purchases of foreign goods $1,866 Changes in inventory $1,137 Unemployment benefits paid by the federal government $2,545 Household purchases of services $6,750 Foreign purchases of domestically produced goods $3,404 Purchases of machinery and equipment by firms $1,094 Local government expenditure on bridges $277 Welfare payments to households $1,327 Household purchases of nondurable goods $5,297 What is Endoor's GDP?

26,689

Year Nominal GDP Price Level 1,998 371 29 2,003 967 88 2,006 2,406 105 2,012 3,443 198 Using the information in the table above. What is the GDP deflator for the year 1,998 using 2,006 as the base year?

27.62

Texas Beer Company sold $357,852 worth of beer it produced. In producing the beer, it purchased $70,720 worth of ingredients from foreign countries and paid workers who reside in Mexico but commute to the U.S. $32,520. How much did these transactions add to U.S. GDP?

287,132

In the economy of Onkor in 2023, Government Spending was $1,178, Consumption was $4,200, Imports were $179, Investment was $381, and Exports were half of Government Spending. What was Onkor's GDP in 2023?

6,169

Gross domestic product measures

a. income and expenditures.

A farmer sells $25,000 worth of apples to individuals who take them home to eat, $50,000 worth of apples to a company that uses them all to produce cider, and $75,000 worth of apples to a grocery store that will sell them to households. How much of the farmer's sales will be included as apples in GDP?

b. $25,000

Martin, a U.S. citizen, travels to Mexico and buys a newly manufactured motorcycle made there. His purchase is included in

b. Mexican GDP, but it is not included in U.S. GDP.

Volkswagen company is Germany own company with a massive factory in Mexico. In 2013, the Volkswagen Mexican factory produced $329 million worth of cars and sold $13 million to the U.S., $42 million to Mexico, and $57 million to Germany. How much was added to Mexico's GDP?

329

In the economy of Onkor in 2045 investment was $1,773, exports were $840, consumption was $2,683, GDP was $8,598 and imports were $182 more than exports. What was Onkor's government spending in 2045?

4,324

Year Nominal GDP Price Level 1,995 480 26 2,003 861 52 2,007 2,298 139 2,011 3,135 199 Using the information in the table above. What is the Real GDP for the year 2,011 using 1,995 as the base year?

409.59

In the economy of Onkor in 2161 investment was $1,925, GDP was $14,798, government spending was two times investment and consumption was $3,294. What was Onkor's net exports in 2161?

5,729

Unemployment compensation is

b. not part of GDP because it is a transfer payment.

By not taking into account the possibility of consumer substitution, the CPI

b. overstates the cost of living

Which of the following is a way to compute GDP?

c. add up the market values of all final goods and services

Which of the following is not included in GDP?

d. All of the above are included in GDP

Over time, people have come to rely more on market-produced goods and services and less on goods and services they produce for themselves. For example, busy people with high incomes, rather than cleaning their own houses, hire people to clean their houses. By itself, this change has

d. caused measured GDP to rise.

Gross domestic product includes all

d. legal final goods and services, but it excludes illegal final goods and services.

The relationship between GDP and life expectancy can be summarized as:

d. strongly positively related when GDP is low but not very related when GDP is high