Macroeconomics Exam 1

if business inventories equal $40 billion at the beginning of the year and 55 billion at the end of the year, then, assuming no other changes, GDP must have.

increased by $15 billion

if the CPI equaled 1.00 in 2008 and 1. 65 in 2018, and a typical households income equaled $35,000 in 2008 and $40,000 in 2018, then between 2008 and 2018 real household income

decreased

In Econland exports equal 25% of total output, while imports equal 20% of total output. Econland has

trade surplus

if workers and employees agree to a three-year wage contract under the expectation of 5%, and inflation inflation turns out to be 3% then

workers gain and employers lose

if bountiful Orchard grows $100,000 worth of peaches, sells $50,000 worth of peaches to consumers, and uses the rest to make jam that is sold to consumers for $100,000, bountiful Orchards contribution to GDP is

$150,000

if an automobile manufacturer pays $200 for a car windshield $400 for for car tires in $100 for a car radio and sells cars made with these parts for $20,000 then each car the automobile manufacturer sells contributes how much to GDP?

$20,000

in 2019 Pete Rich purchased a 1642 painting by Rembrandt for $20 million. He also paid a 1% commission to the auction house that sold the painting. What was the contribution of these transactions to GDP in the year 2019?

$200,000

A report indicated that the average real wage in manufacturing declined by 2% between 1990 and 2000. if the CPI equaled 1.30 in 1990 and 1.69 in 2000, and the average nominal wage in manufacturing was $35 in 2000, what was the average nominal wage in manufacturing in 1990?

$27.47

The country of Northland produced $1 billion of output in one year. The population of Northland was 50 million, of whom 30 million were employed. What was average labor productivity in Northland?

$33,333

In both gamma and delta average labor productivity is $40,000 per worker per year. the population of gamma is 200,000 in the population of delta is 400,0. 50% of the population in each country is employed. Total output and gamma is ___________ and total output in Delta is _______

$4 billion; $8 billion

supposed the total production of an economy consist of 10 oranges is and five candy bars. each orange sells for $.20 and each candy bar sells for $1. What is the market value of production in this economy?

$7

In 2019 , Janice Quinn sells a five year old car to Used Car Incorporated for $4,000 . In the same year, Used Car Incorporated resells the car to Hilda Goner for $4,750 . What is the contribution of these transactions to GDP in the year 2019?

$750

The consumer price index for planet Econ consist of only two items: books and hamburgers. In 2018, the base year, the typical consumer purchased 10 books for $20 each and 200 hamburgers for $1 each. in 2020 the typical consumer purchase 12 books for $23 each and 300 hamburgers for $1.15 each. The consumer price index for 2020 on planet Econ equals.

1.15

suppose a total expenditures for a typical household in 2018 equal $2500 per month, while the cost of purchasing exactly the same items in 2020 was $3000. If 2018 is the base year, the CPI for 2020 equals :

1.20

based on the information in the table, what is the unemployment rate? population 16 and older -1 million participation rate - 80% employed workers - 720,000

10%

using 2019 is the base year, by how much does a "cost of protein" index increase between 2019 and 2020

13.4%

in Econland total output is $6 billion, population equals 250,000 people and of these, 200,000 are employed workers. output per person in Econland equals _______ and average labor productivity equals ______

24,000; 30,000

The CPI in year one equals 1.45 the CPI in year two equals 1.51. the rate of inflation between years one and two was _____ percent

4.1

If the nominal interest rate is 8% and the real interest rate is 3% , then the inflation rate equals

5%

if the nominal interest-rate is 10% in the inflation rate is 3%, then the real interest rate equals

7%

based on the information in the table, how big is the labor force? population 16 and older -1 million participation rate - 80% employed workers - 720,000

800,000

suppose a borrower or lender agree to an interest rate on a loan when inflation is expected to be 6%. The borrower would benefit the most of which of the following inflation rates actually occurred.

9%

given the following data for the economy, compute the value of GDP

90

if tax revenues equals 25% of total output and government expenditures equals 20% of total output, then there is a

Government budget surplus

In Econland, population increased from 1,000,000 to 1.1 million, the number of employed workers increase from 500,000 to 600,000, but average labor productivity decrease from $20,000 per worker per year to $18,000 per worker per year. total output in Econland __________ and the average standard of living ________

increased;decreased

The price of a gallon of gasoline at the pump increased by 10% at the same time that the inflation rate was 5%. The nominal price of gasoline ________ and the real price of gasoline _______

increased;increased