ECON 320 - Emmanuel Lartney

Diversity Index

A ___ is a quantitative measure that reflects the distribution of different types (such as species) in a data set.

reduce government spending.

Adjustment of the CPI to reflect the measurement problems that currently result in overstatement of price increases will:

$25; $20

An economy produces radios and fish. In 2010, one pound of fish costs $1, and a radio costs $1. The economy produces 10 pounds of fish and 10 radios. In 2011, one pound of fish costs $2, and a radio costs $0.50. The economy produces 5 pounds of fish and 20 radios. If real GDP is measured in 2011 prices, then real GDP in 2010 is _____, and real GDP in 2011 is _____.

1,000

Bill sells his car to a used car dealer for $4,000, which then sells it to another household for $5,000. Together, these transactions add _____ dollars to the GDP.

rise

Each June, new high school and college graduates join the labor force and search for jobs. All else equal, this phenomenon would cause the unemployment rate to:

From November 2001 to August 2003, the establishment survey showed a decline in employment of 1.0 million, while the household survey showed an increase of 1.4 million.

From 2001 to 2003, the establishment survey showed a(n) _____ in employment, and the household survey showed a(n) _____ in employment.

expenditures on final goods and services produced in an economy less consumption of fixed capital.

GDP can be measured by all of the following EXCEPT by measuring the:

1.

If the current year is 2014 and the base year is also 2014, then the GDP deflator takes on the value:

155

If the unemployment rate is 6 percent and the number of employed people is 146 million, then, rounded to the nearest million, the labor force equals _____ million people.

increase because of quantity increases only.

Real GDP can:

3.

Suppose that nominal GDP increases by 6 percent in a year when real GDP increases by 3 percent. This means that the inflation rate, as measured by the percentage change in the GDP deflator, is approximately _____ percent in that year.

6 % - 3 % = 3%??? I guess

Suppose that nominal GDP increases by 6 percent in a year when real GDP increases by 3 percent. This means that the inflation rate, as measured by the percentage change in the GDP deflator, is approximately _____ percent in that year.

5

Suppose that real GDP increases by 3 percent in a year when the GDP deflator increases by 2 percent. This means that nominal GDP increases by approximately _____ percent in that year.

Paasche

The GDP deflator has a changing basket of goods and is an example of a _____ index.

Implicit Price Deflator

The GDP deflator is also called the _____ for GDP.

Establishment

The _____ survey measures the employment of workers that firms have on their payrolls.

food and energy products.

The core inflation rate measures the increase in price of a consumer basket that excludes:

disposable

The income that households and noncorporate businesses have available to spend after personal taxes is called _____ income.

sum

The percentage change of a product of two variables is approximately the _____ of the percentage changes in each of the variables.

The GDP deflator is a Paasche index and accounts for substitution of goods when prices change.

Which statement regarding the CPI and the GDP deflator is true?

Laspeyres

a price index with a fixed basket of goods is a ___ index

GDP deflator

also called the implicit price deflator for GDP, is the ratio of nominal GDP to real GDP

increase either because prices rise or because quantities rise.

nominal GDP can: