Macro ECO Quiz 5 Ch 8
First blank, 113 Second blank, 119
2011 2012 Nominal GDP $13,495 billion $14,241 billion Real GDP $11,919 billion $12,007 billion In 2011, the value of the GDP deflator is _____ In 2012, the value of the GDP deflator is _____
First blank, $84,562.5 (I got this by doing 125.00 x 4.50 + 1,200 x 70.00) Second blank, $42,375 (I got this by doing 125.00 x 3.00 + 1,200 x 35.00. With Real GDP, you have to use the base year's prices but use the current year's quantity)
A simple economy produces two goods, Pumpkin Pies and Technical Manuals. Price and quantity data are as follows: Production and Prices in Year 1 (Base year) Product Quantity Price Per Unit Pumpkin Pies 100 $3.00 Technical Manuals 800 $35.00 Production and Prices in Year 2 Product Quantity Price Per Unit Pumpkin Pies 125.00 $4.50 Technical Manuals 1,200.00 $70.00 In Year 2, nominal GDP is equal to: _____ and real GDP is _____
Decreased, since inventories are part of a firm's investment, which is a component of GDP, inventories must have fallen.
An article in the Wall Street Journal states that a change in inventories "dragged down the overall growth in GDP by nearly a full percentage point" below what it otherwise would have been. For this result to occur, is it likely that inventories increased or decreased? Briefly explain.
$6,680
Consider the following simple economy that produces only three goods: 2009 (Base Year) 2017 Product Quantity Price Quantity Price Denim pants 80 $40 100 $50 Wine 90 11 80 10 Textbooks 15 90 20 100 Real GDP in 2017 equals _______
Q1: $11,650 billion (13,100 - 1,450 = ) Q2: $11,150 billion. (11,650 - 1,000 + 500 = ) Q3: $10,150 billion. (11,150 - 1,000 = )
Consider the following table: Billions of dollars GDP $13,100 Depreciation 1,450 Corporate earnings 1,000 Transfer Payments 500 Personal Tax Payments 1,000 Q1: National income (NI) equals _____ Q2: Personal income (PI) equals ______ Q3: Disposable personal income (DPI) equals _____
GDP deflator = (Nominal GDP / Real GDP) x 100
How is the GDP deflator calculated?
Every penny spent on a good or service must end up as someone's income.
In the circular flow of expenditure and income, why must the total value of production in an economy equal the total value of income?
A. Consumption Expenditure B. Not included in GDP calculation C. Not included in GDP calculation D. Net Export Expenditure E. Investment Expenditure F. Government Expenditure
Indicate which component of GDP will be affected by each of the following transactions involving General Motors. Either consumption expenditure, Not included in GDP calculation, Net export expenditure, government expenditure, or investment expenditure: a. You purchase a new Chevrolet Silverado pickup from a GM dealer. b. You purchase a 2017 (preowned) Chevrolet Silverado from a friend. c. GM purchases door handles for the Silverado from an auto parts manufacturer in Indiana. d. GM produces 1,000 Silverados in a factory in Flint, Michigan, and ships them to a car dealer in Shanghai, China. e. GM purchases new machine tools to use in its Flint factory. f. The state of Michigan builds a new highway to help improve access to GM's Flint plant.
Q1: buying and selling of goods and services by obtaining a permit from the government. Q2: of government policies that are retarding economic growth.
Q1: An underground economy involves all of the following except... Q2: Some countries have larger underground economies than do other countries, because
Q1: Household production and the underground economy. Q2: D) All of the above
Q1: GDP is an imperfect measure of economic well-being because it fails to measure what types of production? Q2: Even if GDP included these types of production, why would it still be an imperfect measure of economic well-being? A. GDP is not adjusted for pollution and it does not account for unequal income distribution. B. The value of leisure is not included in GDP. C. GDP is not adjusted for crime or other social problems. D. All of the above.
Q1: the value of final goods and services produced by U.S. factors of production. Q2: larger than
Q1: The Gross National Product (GNP) of the United States is equal to... Q2: If a large amount of production within a country takes place at foreign owned facilities, then it is likely that the country's GDP will be _____ GNP.
Q1: A) GNP considers production that occurs outside the U.S. AND D) GNP is the value of final goods and services produced by residents of the U.S. Q2: smaller than
Q1: U.S. Gross National Product (GNP) differs from U.S. Gross Domestic Product (GDP) in which of the following ways? (Mark all that apply.) A. GNP considers production that occurs outside the U.S. B. GNP is equal to GDP minus depreciation. C. GNP is the value of final goods and services produced within the U.S. D. GNP is the value of final goods and services produced by residents of the U.S. Q2: In the United States, the difference between GNP and GDP is _______ that of many other countries.
Q1: I already inserted the GDP deflator numbers in the table. Q2: 2017-2018 (I did this by subtracting the GDP numbers two at a time (i.e. GDP Defl. for 2019 - GDP Defl. for 2019). Whichever answer was larger was the one I picked.
Q1: Use the data in the following table to calculate the GDP deflator for each year (values are in billions of dollars, enter your response rounded to two decimal places -- remember to multiply by 100). Year Nominal GDP Real GDP GDP Deflator 2015 $18,238 $17,432 104.62104.62 2016 18,745 17,731 105.72105.72 2017 19,543 18,144 107.71107.71 2018 20,612 18,688 110.3110.3 2019 21,433 19,092 112.26112.26 Q2: Which span of years saw the largest percentage increase in the price level, as measured by change in the GDP deflator?
Q1: Y = C + I + G + NX Q2: Consumption, Investment, Government Purchases, and Net Exports
Q1: Which equation represents the relationship between GDP and the four major expenditure components? Q2: What are the four major components of expenditures in GDP?
Q1: GDP only counts final goods and services and not intermediate goods. Q2: GDP would be much higher than it is, but the well-being of the typical person would not necessarily be higher.
Q1: Which of the following is not a shortcoming of GDP as a measure of well-being? Q2: If Americans still worked 60-hour weeks, as they did in 1890,
Q1: When nominal GDP increases from year to year, the increase is due partly to changes in prices and partly to changes in quantities. Q2: Answer is D) all of the above A. Real GDP separates price changes from quantity changes. B. Real GDP uses the prices of goods and services in the base year to calculate the value of goods in all other years. C. By keeping prices constant, we know that changes in real GDP represent changes in the quantity of output produced.
Q1: Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next? Q2: How does real GDP deal with the problem inflation causes with nominal GDP? A. Real GDP separates price changes from quantity changes. B. Real GDP uses the prices of goods and services in the base year to calculate the value of goods in all other years. C. By keeping prices constant, we know that changes in real GDP represent changes in the quantity of output produced. D. All of the above
First blank, $8,300 Second blank, $8,790 Third blank, 5.90 % (Look at formulas in notebook)
Suppose the information in the following table is for a simple economy that produces only the following four goods: shoes, hamburgers, shirts, and cotton. Further, assume that all of the cotton is used to produce shirts. If the base year is the year 2012, then real GDP for 2020 equals ______ and the real GDP for 2021 equals ______. The (annual) growth rate of real GDP in 2021 is ______% 2012 Statistics 2020 Statistics 2021 Statistics Product Quantity Price Quantity Price Quantity Price Shoes 110 $55.00 120 $70.00 120 $75.00 Hamburgers 75 2.00 100 2.00 120 2.25 Shirts 50 30.00 50 25.00 65 25.00 Cotton 12,000 0.09 12,000 0.07 13,000 0.08
Go to question in the quiz to find the answers you typed in. Look in notebook to see the formulas that you need to use
This question has too big of a chart to insert. So just go look at the question in the quiz, question #13. Fill in Column (4) by calculating real GDP using the GDP deflator with a base year of 2018 from Column (3). Fill in Column (7) by calculating real GDP using the GDP deflator with a base year of 2020 from Column (6). Fill in Column (5) by calculating the annual percentage change in real GDP for each year using the values from Column (4). Fill in Column (8) by calculating the annual percentage change in real GDP for each year using the values from Column (6).
the additional market value a firm gives to a product and is calculated as the difference between the sale price and the price of intermediate goods.
What is value added and how is it calculated? Value added refers to
Answer is E) All of these: A. If, in macroeconomics, we measured production using quantities, we would add tons of wheat grown by U.S. farmers to the number of iPods produced by Apple, to gallons of milk, and so on. B. When we measure total production, we can't just add together the quantities of every good and service because the result would be meaningless. C. Measuring production using market value in dollar terms allows us to add together many different goods and services. D. Both A and C.
Why in microeconomics can we measure production in terms of quantity, but in macroeconomics we measure production in terms of market value? A. If, in macroeconomics, we measured production using quantities, we would add tons of wheat grown by U.S. farmers to the number of iPods produced by Apple, to gallons of milk, and so on. B. When we measure total production, we can't just add together the quantities of every good and service because the result would be meaningless. C. Measuring production using market value in dollar terms allows us to add together many different goods and services. D. Both A and C. E. All of these
