Final Eco 285

For a closed economy, GDP is $18 trillion, consumption is $13 trillion, taxes are $2 trillion and the government runs a deficit of $1 trillion. What are private saving and national saving?

$3 trillion and $2 trillion, respectively

In the base year, the GDP deflator is always

100

Suppose the economy is closed (no foreign sector) with natural Saving of 3 trillion, consumption of 10 trillion, and government purchases of 4 trillion. What is GDP?

17 trillion

Suppose that the adult population in some country is 225 million. If 40 million are unemployed and 100 million are employed, then the unemployment rate is approximately

29%

Which of the following would NOT be included in 'employed' for a given country?

A person who has been laid off.

Which of the following items plays a role in determining productivity

Physical capital, Natural Resource, and technological knowledge

Which of the following statements about nominal GDP and real GDP is correct?

Real GDP is a better gauge of economic well-being than nominal GDP.

For some racquet sports, there have been increases in the size of the racquets; also, the methods and materials used for making racquets have improved. To which problem in the construction of the CPI is this situation most relevant?

Unmeasured quality change

The interest rate that the Fed charges banks that borrow reserves from it is the

discount rate.

Jackie, a Canadian citizen, works only in the United States. The value of the output she produces is

included in U.S. GDP, but it is not included in Canadian GDP

An open-market purchase by the Federal Reserve Bank

increases the number of dollars in the hands of the public and decreases the number of bonds in the hands of the public

Which of the following is NOT a tool of monetary policy?

increasing the government budget deficit

If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, which would rise?

nominal GDP but not real GDP.

Stagflation exists when prices

rise and unemployment rises

An increase in the price of Irish whiskey imported into the United States will be reflected in

the U.S. CPI, but not the U.S. GDP deflator

When production costs rise,

the short-run aggregate supply curve shifts to the left.