Macro CH 6
Assume that the real GDP of the United States is approximately $12 trillion and the population of the United States is approximately 300 million. What is per capita real GDP?
$40,000
Real GDP is nominal GDP adjusted for:
changes in prices.
If the price level and nominal GDP both doubled, then real GDP would:
Remain Unchanged
Which of the following would NOT be a part of GDP? - used car sales - new residential construction - a new truck purchased by a building contractor - cable TV service purchased for a home
Used car sales
To compare the GDP of two different countries with different currencies, it is necessary to use:
an exchange rate
The largest component of U.S. GDP is value added in:
business production.
The text lists three primary goals of macroeconomic policy. Which one below is not one of those listed? economic growth low inflation rate low unemployment rate high productivity rate
high productivity rate
Disposable income equals:
income plus government transfers minus taxes.
Real GDP is the same as _____ GDP.
inflation-adjusted
An example of investment spending is the purchase of a:
new tractor by a farmer.
The best available common measure of a nation's standard of living is:
real GDP per capita.
The inflation-adjusted measure of aggregate output typically used by economists is called:
real gross domestic product.
Which of the following is an example of an intermediate good? stocks and bonds purchased by a business executive a cellular telephone purchased by a college student a wedding ring purchased by an engineer for his fiancée tires General Motors purchased from Goodyear for new electric cars
tires General Motors purchased from Goodyear for new electric cars
Which one of the following transactions will be included in the official measurement of GDP?
Sean bought a new truck.
Using real GDP per capita to compare standards of living between countries is problematic for all of the following reasons except : -The measure does not consider the amount of effort (e.g. manhours) expended to produce the output. -The measure does not consider the environmental damage done by producing the output. -The measure does not adjust for changes in the prices of what gets produced. -The measure does not consider whether the output is equitably distributed.
The measure does not adjust for changes in the prices of what gets produced.
If nominal GDP increases from one year to the next, _____ must have risen.
output or prices or both
The movement of the economy from peak to trough and trough to peak is called:
the business cycle.
the best definition of GDP?
the total value of all final goods and services produced in the economy during a given year
If nominal GDP equals $18 trillion when the price index is 230, then real GDP equals approximately:
$7.8 trillion
GDP can be calculated by any of the following three ways except: adding the spending on all domestically-produced final goods and services adding up all incomes paid to factors of production adding up the market value of all final goods and services produced both domestically and by domestically owned foreign operations add up the value added of all domestic producers
adding up the market value of all final goods and services produced both domestically and by domestically owned foreign operations
Goods that are produced domestically but sold abroad are:
exports
GDP is the total dollar value of all:
final goods and services produced in the economy in a given period.
Nominal GDP:
has not been adjusted for changes in prices over time.
Which of the following is FALSE? Gross domestic product: is aggregate output. is the total production of final goods and services. grows during an expansion. is the total production of all final and intermediate goods and services.
is the total production of all final and intermediate goods and services.
An intermediate good would be:
lumber used to build a house.
