Chapter 8 Exam 2

Consider the following data for Tyrovia, a country that produces only two products: guns and butter. Refer to Table 8-11. Nominal GDP for Tyrovia in 2018 equals...

a. $1,140.

Refer to Table 8-2. Suppose that a simple economy produces only four goods and services: shoes, DVDs, tomatoes, and ketchup. Assume half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households. Using the information in the above table, nominal GDP for this simple economy equals....

a. $7,900.

13. If real GDP grows by 3% in 2014, 2.2% in 2017, and 2.5% in 2018, what is the average annual growth rate of real GDP?

a. 2.57%

During a business cycle expansion, total production ________ and total employment ________.

a. increases; increases

What are the four major categories of expenditure?

a. net exports, Consumption, investment, government purchases

Refer to Table 8-3. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals

b. $1,150.

Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Assume all of the coffee beans are used in the production of the coffee drinks. Using the information in the above table, nominal GDP for this simple economy equals Table 11-1

b. $12,750.

Refer to Table 9-2. Assume the market basket for the consumer price index has two products—bread and milk—with the following values in 2013 and 2018 for price and quantity: The Consumer Price Index for 2018 equals

b. 115.62

What are the four categories of income?

b. Profit, Rent, Wages, and Interest.

You are appointed as a chief economist at Federal Reserve Bank of St Louis. You are asked the following question: An underground economy involves all of the following except?

b. buying and selling of goods and services by obtaining a permit from the government.

Value added equals the market price of the firm's product minus

b. the price of intermediate goods.

Refer to Table 11-2. Consider the data below (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals

c. $1,400.

Consider the following data for Tyrovia, a country that produces only two products: guns and butter.Refer to Table 8-11. Real GDP for Tyrovia for 2018 using 2009 as the base year equals

c. $690.

What is the growth rate of the real GDP between 2019 and 2020? In 2019, Real GDP was $18,482 billion while In 2020, Real GDP was $17,669 billion

c. -4.39%

You are being asked during an interview question: Using the Rule of 70, how long is it going take the U.S. real GDP to double if the real GDP growth rate is estimated at 4.4%. (Round your answer to the next digit)

c. 16 years

Based on the table below, using the GDP deflator approach, the inflation rate from 2011 to 2012 was ... (you can limit your calculation to two digits decimal)

c. 3.62%

Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts.Refer to Table 8-13. Real GDP for Vicuna for 2016 using 2018 as the base year equals

c. C) $5,650.

Which of the following goods is directly counted in GDP?

c. a 12-inch Subway sandwich purchased by a student

What is the largest component of spending in the United States?

c. consumption spending

Which of the following is not directly counted in GDP?

c. intermediate goods

The "underground economy" is also referred to as

c. the informal sector.

Refer to Table 8-6. Consider the table of production and price statistics for a small economy in 2018. If the economy only produces the four goods listed below, what is GDP for 2018?

d. $543,000

Which of the following is not a financial intermediaries?

d. airlines

The purchase by a household in China of a CD produced in the United States is included in U.S.

d. net exports.