HW-06_Ch-06

9 The Czech Republic has a GDP of 2,000 billion koruny. The exchange rate is 20 koruny per U.S. dollar. The Czech population is 20 million. Calculate the per capita GDP of the Czech Republic in U.S. dollars.

- $5 • $100,000 -x $5000 • $500

6 In 1980 Denmark had a GDP of $70 billion (measured in U.S. dollars) and a population of 5.1 million. In 2000, Denmark had a GDP of $160 billion (measured in U.S. dollars) s and a population of 5.3 million. By what percentage did Denmark's GDP per capita rise between 1980 and 2000?

- 45.4% - 219% -x 120% - 128%

10 Which of the following is true?

- A depression is a recession that is mild and relatively brief. • During the contractionary phase of the business cycle, the rate of unemployment is generally quite low. -x The expansions and contractions of real world business cycles last varying lengths of time and often differ in magnitude. - The timing of business fluctuations is regular and therefore easily predictable.

3) In calculating GDP, investment (I) includes:

-the amount spent on stocks and bonds. -x the amount spent on new factories and machinery. - the amount spent on consumer goods that last more than one year. -the amount spent on purchases of art.

7 The information above describes the real GDP per capita for a country for the period from 1985 through to 2001. In order, in which year did a peak occur, and a trough occurred in which year?

-x 1993; 1998 • 1995; 1997 -1994: 1999 -_?

5 The demand (expenses) measure of GDP accounting adds together:

-x Consumption, investment, government purchases, and trade balance. - Consumption, interest, government purchases, and trade balance. - Consumption, government purchases, wages and salaries, and trade balance. - Wages and salaries, rent, interest, and profit.

4 A business cycle reflects changes in economic activity, particularly real GDP. The stages of a business cycle are:

-x Expansion, peak, recession, and trough. - Expansion, trough, recession, and peak. - Contraction, recession, expansion, and boom. - Trough, expansion, recession, and peak.

2) Which of the following are most likely classified by economists as consumer durable goods?

-x automobiles, furniture -food, clothing - drugs, toys, magazines, books -stocks, bonds

8 Which of the following is not counted as a part of GDP?

-x the purchase of 100 shares of AT&T stock by your grandfather. • the purchase of a snow plough by the city of Minneapolis. • the unsold additions to inventory at an appliances store • the purchase of a loaf of bread by a consumer

1) GDP does not directly include:

• the value of services rendered during a period. - the value of final goods and services produced, but not sold, during a period. -x the value of intermediate goods sold during a period. -A. the value of goods produced domestically and sold abroad.