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