exam 3 questions

If a car was produced in detroit in 2013 but was not sold until 2014, it should be included in ____ GDP, and its value should be counted in ____

2013, inventory changes

which type of fiscal policy involves reducing government spending, reducing transfer payments, or raising taxes to decrease aggregate demand

contractionary

which measure is an example of expansionary fiscal policy

increases unemployment compensation

an expansionary fiscal policy can result in

inflation and higher GDP.

aggregate supply shifts to the left when

input price rises

what is real GDP in 2010 dollars if nominal GDP in 2014 is 15,000 billion; The GDP deflator in 2010 was 100

13,636

If nominal GDP is 13 trillion for a given year and the GDP deflator for that year is 115, then the real GDP is

11.3 trillion

GNP includes outputs produced _____ but it does not include outputs produced _____

Outside the USA by US citizens, inside the USA by foreign citizens

The GDP deflator for the base year is

always 100

when government spending rises

aggregate demand rises

GDP measures the final value of goods and services produced to avoid the problem of

double counting

which category is an example of discretionary spending

hurricane relief fund

The GDP deflator is an index that includes prices of all of these except

imports

an economic recovery that produces too few jobs to significantly reduce the unemployment rate is know as

jobless recovery

the laffer curve suggests that when tax rates are very high, ______ tax rates will ______ tax revenues

reducing, increase

increased consumer confidence will shift the aggregate demand curve to the ____ and ____ output demand

right, increase

according to the lafer curve, when tax rates are zero

tax revenues are 0

Macroeconomics was developed to explain

the great depression