Macro-Econ Chapter 5

Rising prices that slow an economy can lead to all of these EXCEPT

An increase in demand for goods and services

Which of these is NOT true about the Treasury spread?

An inverted yield curve occurs when the interest rate of a long-term 10-year bond is more than the interest rate of a short-term 3-month bill.

A bakery purchases frozen dough worth of $10,000 and puts it in the inventory to be sold later. What happens with the national income accounts?

increases by $10,000

The part of the business cycle that goes from economic trough to economic peak is known as ______________.

Recovery

What phase of the business cycle does the headline "Consumer Confidence at Highest Level in Three Years" suggest?

Recovery

Use the following data to calculate GDP: Consumption =USD 9.5 billion, Investment=USD 3 billion Government spending =USD 2.5 billion Exports=USD 2 billion Imports=3 billion

GDP= USD 14 billion

Which of these is NOT used to calculate GDP as part of the income approach?

Government Spending

________ is/are a country's GDP divided by its population

Gross Domestic Product per Capita (GDP per capita)

A Japanese automaker produces $1 million worth of automobiles in its factory in the United States. How much of that is added to the GNP of the United States?

USD 0,00

A Japanese automaker produces USD 1,000,000 worth of automobiles in its factory in the United States. How much of that is added to the GDP of the United States?

USD 1,000,000

Suppose in 2018 the United States had consumption worth $13 trillion, investment worth $5 trillion, and government spending worth $3 trillion, with $2 trillion in exports and $3 trillion imports. What was its GDP per capita, assuming there were 400 million residents?

USD 50,000