MACRO - Chapter 8,9,10 & 11

Consider the following simple economy that produces only three​ goods: Real GDP in 2017 equals $_______

$6,680

Your father earned​ $34,000 per year in 1984. To the nearest​ dollar, what is that equivalent to in 2014 if the CPI in 2014 is 215 and the CPI in 1984 is​ 104?

$70,288

Year/Nominal Average Hourly Earnings/CPI: 2008; $16.00; 202 2009; $17.00; 207 2010; $18.00; 209 What is the real average hourly wage in 2009? What can be said about real average hourly earnings and nominal average hourly earnings between 2008 and​ 2010?

$8.21 Both real and nominal average hourly earnings increased.

Year/Nominal Average Hourly Earnings/CPI 1965; $2.65; 32 2010; $22.59; 219 The table above reports the nominal average hourly earnings in private industry and the consumer price index for 1965 and 2010. The real average hourly earnings for 1965 in​ 1982-1984 dollars equal...

$8.28

If a​ 3-month Treasury bill pays​ 5.5% and the change in the consumer price index​ (CPI) is​ 4.7%, what is the real interest rate​(the true return to​ lending)?

0.8%

Indicate whether each of the following is a final​ good, an intermediate​ good, or neither. 1. coffee beans purchased by a coffee shop 2. one share of google stock 3. a new pick-up truck purchased by a consumer 4. a new home purchased by a family

1. Intermediate good 2. Neither 3. Final Good 4. Final Good

f real GDP equals​ $11,567 billion in 2006 and​ $11,916 billion in​ 2007, and assuming population is constant over those two​years, how many years will it take for real GDP per capital to​ double?

23.2 years

Which of the following is an example of a worker experiencing frictional​ unemployment?

A worker quits his job at the U.S Post Office to find more interesting work

Which of the following would be included in the gross national product​ (GNP) of the United​ States? a. Production from a Canadian firm that operates in Montana. B. Production from a U.S. firm that operates in Mexico. Your answer is correct. C. Production from an Hungarian citizen who works in​ Denver, CO. D. All of the above are included in the GNP of the U.S.

B

Why is GDP an imperfect measurement of total production in the​ economy?

GDP does not include household production or production from the underground economy

When a significant fraction of domestic production takes place in​ foreign-owned facilities, a​ country's difference between GDP and GNP is as​ follows:

GDP will be much larger than GNP

The table and figure show GDP measured in terms of the total income received by households. Use the table and figure to help determine which of the following statements about the division of income is false.

Gross domestic income is measured precisely

GDP is an imperfect measure of economic​ well-being because it fails to measure what types of​ production? Even if GDP included these types of​ production, why would it still be an imperfect measure of economic​ well-being?

Household production and the underground economy Value of leisure is to included in GDP, GDP is not adjusted for pollution and it does not account for unequal income distribution, GDP is not adjusted for crime or other social problems

Which of the following formulas does the Bureau of Labor Statistics use to calculate the unemployment​ rate?

Number of unemployed/number in labor force x 100

Even perfectly anticipated inflation imposes costs. Why?

Paper money loses its purchasing power by the rate of inflation; menu costs; some wages will fail to keep up with anticipated inflation

Albanda is an agrarian economy located in South Asia. Shen Chou and her friend Wang Tao are discussing the efficacy of the Consumer Price Index.​ Shen, who works with a nonprofit​ organization, says that the Consumer Price Index does not reflect the realities of consumption patterns of the average consumer.​ Wang, a policy​ planner, says that it must be accurate because it was updated only a year ago. Which of the​ following, if​ true, would strengthen​ Shen's argument?

Pensioners whose benefit payments are directly linked to the changes in CPI reported a decreased purchasing power compared to the previous year.

Suppose the base year is 2001. Looking at GDP data from the United States from 2001 to the​ present, what would be true of the relationship between nominal GDP and real GDPLOADING...​?

RGDP​ < NGDP because prices are rising.

The central bank of the country Iberia recently announced a reduction in the interest rate by 150 basis points. Following this​announcement, Matthew​ Boulder, who is interested in buying a​ house, expects the real interest rates also to fall.​ However, he notices that the real interest rate in the economy has actually increased. Which of the following is most likely to explain this​ outcome?

The Iberian economy is going through a period of deflation.

Use the graph to help determine which one of the following statements is​ true:

The average American in the year 2018 could buy more than eight times as many goods and services as the average American in the year 1900.

Real GDP per capita is often used as a measure of general​well-being. While increases in real GDP often do lead to increases in the​well-being of the​population, why is real GDP not a perfect measure of​well-being?

The costs of pollution are not included, GDP does not include crime rates or income distribution, the value of leisure is not included

In an attempt to control​ inflation, the Indian central bank increased interest rates substantially. This was expected to have an adverse impact on the​ country's GDP this year. Some economists also expected a​ year-on-year decline in​India's GNP.​ However, Indian GNP actually went up. Which of the​ following, if​ true, would best explain this​ outcome?

The number of Indian IT employees working on projects outside of India increased considerably this year.

The production of LCD television sets in Australia increased by​ 20% this year as compared to last year. Those TV sets were no less advanced technologically than the sets sold in previous years.​ However, the value of the contribution LCD television sets made to​ Australia's nominal GDP during this year was the same as the previous year. Which of the​ following, if​ true, would best explain this​ outcome?

The price of LCD television sets declined in the past year.

The GDP of the country Sumeria has grown at an average rate of 6 percent over the last two​ years, while the rate of inflation has remained more or less stable. Macroeconomists in the country are arguing that this increase in GDP is a clear indication of an overall improvement in the​ well-being of its people. Which of the​ following, if true about the last two years in​ Sumeria, would weaken this​ argument?

The wealthiest Sumerians possess an increasingly large share of​ Sumeria's wealth.

How do unemployment insurance payments in the United States and social insurance programs in other countries increase the unemployment​ rate?

They decrease the opportunity cost of job search

Which of the following equations sums up the components of Gross Domestic Product​ (GDP)?

Y = C+I+G+NX

Household production and the underground economy According to most​ economists, is it a serious shortcoming of GDP that it does not count household production or production in the underground​ economy?

are not accounted for in the Bureau of Economic​ Analysis' estimates of GDP. Most economists would answer​ "no" because these types of production do not affect the most important use of the GDP​ measure, which is to measure changes in total production over short periods of time

Which of the following is a durable good? a. food b. a washing machine c. medical care d. clothing

b

The country of Alaine produces​ 1,000 tons of corn during a year. It is valued at​ $500 per ton. A lobbyist for the corn industry in Alaine argues that the total value of corn production should be included in the​ country's GDP for the same year. The​ lobbyist's claim is based on the assumption that...

corn is not used in the production of other goods

The size of the underground economy would tend to decrease if the government of a country

decreased government regulations on businesses

Which of the following are likely to increase the measured level of GDP and which are likely to reduce it? a. When the number of people working outside the home decreases​, the measured level of GDP _______. b. When there is a sharp decrease in the crime​ rate, the measured level of GDP_____________. c. If higher tax rates cause more people to hide the income they​ earn, the measured GDP ____________.

decreases may increase or decrease decreases

The best measure of the income households actually have available to spend is

disposable personal income

T/F: If income rises more slowly than the rate of​ inflation, purchasing power will rise.

false

The minimum wage law... The effect of labor unions on overall unemployment is ______ since only a _______ percentage of the labor force outside the government is unionized. An efficiency wage...

has only a small effect on the unemployment rate since only a small part of the labor force earns the minimum wage. small; small increases the unemployment rate since firms pay a​ higher-than-market wage that increases the quantity of labor supplied

Of the eight categories in the CPI market​ basket, which three categories make up more than 75 percent of the​ basket? Computation of the CPI assumes that households buy the same market basket of products each month. For this​ reason, which one of the following factors is not relevant in calculating the​ CPI?

housing, transportation and food the quantities of the products households purchase in the current year

Increases in the minimum wage will The unemployment rate in the United States is usually​ ________ than the unemployment rates in most other​ high-income countries, partly because the United States has​ _________ requirements for the unemployed to receive government payments.

increase unemployment among teenagers lower; more stringent

Potential GDP...

increases over time as technological change occurs; increases over time as the labor force grows

The purchase by a foreign government of an airplane produced in the United States is included in U.S.

net exports

The largest component of gross domestic income is....

wages

Indicate whether you agree or disagree with the following​ statement: ​"In years when people buy few shares of​ stock, investment will be low ​and, therefore, so will gross domestic product.​(GDP)."

​Disagree: Investment as a component of GDP refers to the purchase of physical and human capital and​inventory, not stock purchases.

Levi Strauss​ & Co. makes the denim fabric for some of its jeans in a factory in​ Greensboro, North​ Carolina, using cotton grown in the United States. The company then sends the denim fabric to a plant in​ China, where workers assemble the jeans. Is the denim fabric a final good? Briefly explain.

​No, the denim fabric is an intermediate good that will be included in a final good​ (the jeans).

Levi Strauss​ & Co. makes the denim fabric for some of its jeans in a factory in​ Greensboro, North​ Carolina, using cotton grown in the United States. The company then sends the denim fabric to a plant in​ China, where workers assemble the jeans. Is the value of the denim fabric included in U.S. GDP? Briefly explain.

​No, the value of the denim fabric is included in the price of the denim jeans when the jeans are sold.

A very simple economy produces three​ goods: cameras, legal​ services, and books. The quantities produced and their corresponding prices for 2017 and 2020 are shown in the table. What is real GDP in​ 2020, using 2020 as the base​ year?

$11,790

Based on the table to the​ right, what is national income for this​ economy?

$2,950 billion

Consider the data shown below for​ Vicuna, a country that produces only two​ products: oranges and shirts Real GDP for Vicuna for 2019 using 2020 as the base year equals

$5,650

If the CPI was 207 in 2009 and 225 in​ 2013, what wage would someone who earned a​ $50,000 income in 2009 have to earn in 2013 in order to keep her purchasing power​ constant?

$54,348

If the inflation rate is 6 percent and the nominal interest rate is 4​ percent, then the real interest rate is The real interets rate equals

-2%, which is the nominal interest rate minus the inflation rate. the nominal interest rate minus the inflation rate

Suppose you were borrowing money to buy a car. Consider the following situations. Situation​ 1: Suppose the interest rate on your car loan is 15.00 percent and the inflation rate is 14.00 percent. Calculate the real interest rate. _____ Situation​ 2: Suppose the interest rate on your car loan is 5.00 percent and the inflation rate is 2.00 percent. Calculate the real interest rate. _____ Situation 1 will be ________ Situation 2 because the ________ is lower. Now suppose you are JPMorgan​ Chase, and you are making car loans. Which situation above would you now​ prefer?

1% 3% better than; real interest rate JPMorgan Chase would prefer Situation 2.

Indicate whether each of the following transactions represents the purchase of a final good.... 1. The purchase of steel from a steel mill by an automobile manufacturer. 2. The purchase of a new fire truck by the local government. 3. The purchase of French wine by a U.S consumer. 4. The purchase of a new plane by American Airlines.

1. Not the purchase of a final food 2. Purchase of a final good 3. Purchase of a final good 4. Purchase of a final good

Consider the following data on nominal GDP and real GDP​ (values are in billions of​ dollars): The GDP deflator for 2020 equals

108.5

In 2011, the value of the GDP deflator is ______. -Nominal GDP: $13,195 billion -Real GDP: $11,319 billion In 2012, the value of the GDP deflator is ______. -Nominal GDP: $13,841 billion

117; 120

Consider the following values of the consumer price index for​ 1996, 1997, and​ 1998: Year/CPI: 1996; 157 1997; 161 1998; 163 The inflation rate for 1997 was equal to ________

2.5%

Use the data in the following table to calculate the GDP deflatorLOADING... for each year ​(values are in billions of​ dollars, enter your response rounded to two decimal places​ -- remember to multiply by 100​). ​Source: Federal Reserve Bank of St. Louis​ (FRED) (research.stlouisfed.org/fred2/). Which span of years saw the largest percentage increase in the price​ level, as measured by change in the GDP​deflator?

2017 to 2018

Calculate the missing values in the table below by using the provided data collected in the household survey for June 2021. ​ Working-age population: ______ Employed: 151, 602 Unemployed: _______ Unemployment rate: 5.9% Labor force: ________ Labor force participation rate: 61.6%

261, 537 9,505 161,107

If the nominal interest rate is​ 6% and the inflation rate is​ 2%, then the real interest rate is

4%

Which of the following can give an early warning of future increases in the price​ level? a. producer price index b. consumer price index c. GDP deflator d. All of the above

A

Which of the following does NOT lead to long-run economic growth? A. Technological change B. Improved labor productivity C. Increase in average wages D. Increase in the capital stock

C

The figure shows the values of the components of GDP for the year 2018. Based on the data​ shown, which of the following statements regarding the components of GDP is​ false?

Consumer spending on services is less than the sum of spending on durable and nondurable goods.

What are the four major categories of​ expenditure?

Consumption, investment, government purchases and net exports

In April​ 2019, the​ working-age population of the United States was 258.7 million. The​ working-age population is divided into those in the labor force​ (162.5 million) and those not in the labor force​ (96.2 million). The labor force is divided into the employed​ (156.6 million) and the unemployed​ (5.8 million). Those not in the labor force are divided into those not available for work​ (91.3 million) and those available for work​ (4.9 million).​ Finally, those available for work but not in the labor force are divided into discouraged workers​ (0.5 million) and those currently not working for other reasons​ (4.4 million). Use this data to help determine which one of the following statements is​ true: A. The unemployment rate is 5.8 million/162.5 million×100=3.6%. B. The labor force participation rate is 162.5 million/258.7 million×100=62.8%. C. The labor force is 258.7 million. D. Both A and B above are true.

D

Based on the table and​ graph, which of the following statements regarding total production and total income is​ true?

Each measure of production and income gives a different value​ (even if only​ slightly) for total production and income.

Suppose John Q. Worker is currently unemployed. Each​ day, John Q. Worker spends the entire day searching available job openings for an appropriate position given his set of​ skills, abilities, and interests. If someone asks John Q. what he does for​work, he tells them that he is currently​ "in-between jobs." Which of the following best classifies John​ Q.'s unemployment​status?

Frictionally unemployed

National income is...

GDP minus depreciation

The government of a country is considering increasing the minimum hourly wages by 10 percent. Economists argue that this is going to have a negative effect on employment in the long term. Which of the​ following, if​ true, would strengthen the argument for increasing minimum​ wages?

Increases in the minimum wage are observed to reduce employee turnover.

The BLS uses the establishment survey to collect information on employment in the economy. Indicate one drawback of the establishment survey compared to the current population survey and indicate one advantage.

It does not include information about​ self-employed people. It is based on company payroll and not on unverifiable answers.

____________ is the percentage of the​ working-age population in the labor force. Population: 232 million working-age Population: 133 million Labor force: 83 million number of employed people: 77 million number of unemployed people: 6 million Labor Force Participation Rate:

Labor Force Participation Rate 62.4%

Suppose the fixed interest rate on a loan is​ 5.75% and the rate of inflation is expected to be​ 4.25%. The real interest rate is​1.5%. Suppose now that instead of​ 4.25%, the inflation rate unexpectedly reaches​ 5.5%. Who gains and who loses from this unanticipated​ inflation? ​(Mark all that​ apply.)

Lenders lose from a lower real interest rate. Borrowers gain from a lower real interest rate.

GDP: $13,300 billion Depreciation: $1,400 billion Corporate Earnings: $1,250 billion Transfer Payments: 500 billion Personal Tax Payments: 1,250 billion National Income:_______ Personal Income:________ Disposable Personal Income:____

National Income: $11,900 billion Personal Income: $11,150 billion Disposable Personal Income: $9,900 billion

What effect do labor unions have on the unemployment​ rate?

Since few​ non-government workers are​ unionized, there is no significant effect on the unemployment rate.

The​ working-age population in Concordia was estimated to be 6.5 million in a certain year. The​ country's labor department announced that the total number of unemployed people in the country had gone up to​ 460,000 during this year​ while, the total number of people out of the labor force decreased to​ 2,000,000. Oscar​ Lewis, a student of labor economics believes that the labor department data is flawed. Which of the​ following, if​ true, would strengthen the argument that the data understates​ unemployment?

Skilled workers who were forced to shift to​ part-time jobs because of an economic downturn are also considered employed.

The​ working-age population in Concordia was estimated to be 6.5 million in a certain year. The​ country's labor department announced that the total number of unemployed people in the country had gone up to​ 460,000 during this year​ while, the total number of people out of the labor force decreased to​ 2,000,000. Oscar​ Lewis, a student of labor economics believes that the labor department data is flawed. Which of the​ following, if​ true, would strengthen the argument that the data understates​ unemployment?

Skilled workers who were forced to shift to​ part-time jobs because of an economic downturn are also considered employed.

How does the U.S. economy create and destroy millions of jobs each​ year?

Some businesses are​ expanding, while others are contracting. In the market​ system, new firms are constantly entering and exiting various industries.

Which of the following causes changes in the CPI to overstate the true inflation​ rate?

Substitution bias increase in quality bias new product bias

John​ Smith, a factory worker at an automobile plant in the city​ Detrigan, makes​ $25 per hour. His​ dad, Larry Smith who retired from a plant in the same city ten years​ back, was earning an average of​ $10 per hour at the time of retirement. Looking at the​ CPI, John concludes that a factory​ worker's purchasing power is lower now compared to ten years ago.​Larry, however, does not agree that purchasing power has fallen. According to​ him, this conclusion cannot be drawn from such limited data. Which of the​ following, if​ true, would weaken​ Larry's claim that the purchasing power of an average factory worker has not​fallen?

The total number of hours worked by an average factory worker has fallen over the years.

The economy of Cassiopeia revolves around tourism. Statistics reveal that the unemployment rates for the months of January through March are significantly higher than the other months of the year. Which of the​ following, if​ true, can explain​ this?

The unemployment data is not seasonally adjusted.

Indicate whether the following statement is true or false and why. ​ "A wage rising slower than the rate of inflation is actually​ falling."

True. If wages are increasing slower than the average price of goods and​ services, purchasing power falls.

Why is the unemployment​ rate, as measured by the Bureau of Labor​ Statistics, an imperfect measure of the extent of joblessness in the​ economy?

Underemployed people are considered employed. Discouraged workers are not considered unemployed. It fails to account for illegal activities. It does not account for inaccurate responses to the Current Population Survey.

What are the four categories of income?

Wages, Interest, Rent and Profit

Why does inflation make nominal GDPLOADING... a poor measure of the increase in total production from one year to the​ next? How does real GDPLOADING... deal with the problem inflation causes with nominal​ GDP?

When nominal GDP increases from year to​ year, the increase is due partly to changes in prices and partly to changes in quantities. Real GDP separates price changes from quantity changes, By keeping prices​ constant, we know that changes in real GDP represent changes in the quantity of output produced, Real GDP uses the prices of goods and services in the base year to calculate the value of goods in all other years.

What advice for finding a job would you give someone who lost his or her job because of machine​ learning? According to the​ BLS, in what category of unemployment would that person​ belong? If someone lost his or her job because of machine​ learning, that person would be considered

You should tell the worker that he or she needs to learn new skills or move to another city to find a job. structurally unemployed

Suppose that you are available to go to work but have not looked for a job for at least the last four weeks because you believe that there​ aren't any jobs available. You would be counted as... Which of the following is the correct formula for calculating the unemployment​ rate?

a discouraged worker Number of unemployed/labor force x 100

When the economy is at full employment,....

all remaining unemployment is either frictional or structural, the natural rate of unemployment prevails, the unemployment rate is greater than zero

According to​ Costco's CEO, Jim​ Sinegal: ​"Paying good wages and keeping your people working for you is good business...Imagine that you have​ 120,000 loyal ambassadors out there who are constantly saying good things about Costco. It has to be a significant advantage for​you." ​Sources: Alan B. Goldberg and Bill​ Ritter, "Costco CEO Finds​ Pro-Worker Means​ Profitability," ABCnews.com​, Aug.​2, 2006; Lori​ Montgomery, "Maverick CEO Joins Push to Increase Minimum​ Wage," Washington Post​, Jan.​ 30, 2007. What is​ Costco's CEO referring​ to?

efficiency wages

The​ short-term unemployment that arises from the process of matching workers with jobs is called

frictional unemployment

The three types of unemployment are.... The type of unemployment most likely to result in hardship for the people who are unemployed is...

frictional, structural, and cyclical unemployment structural because this the of unemployment requires retraining to acquire new job skills

An increase in unemployment insurance payments​ would, in​ effect, ________ the amount of time spent searching for a​ job, which would increase​ ________ unemployment.

increase; frictional

In an "underground economy", the production of goods and services

is not measured or included in GDP

If prices rise over time, then real GDP will be ________.

larger than nominal GDP in years before the base year

While gross domestic product​ (GDP) measures the size of a​ nation's economy and is widely used as an indicator of living​ standards, it does have limitations in that it does not fully take into account quality of life. GDP does measure the value of goods and services produced in an​ economy, but it does not take into account any positive or negative effects resulting from the production​ process, including such things as environmental damage or health issues. GDP also focuses on​ production, whereas​ today's society is increasingly driven by the growing service sector. In attempting to more accurately represent modern​ economies, some countries have developed alternative measurements of​ well-being to complement the data measured by GDP. India is one of these​ countries, and its Ministry of Housing and Urban Affairs has developed the Ease of Living​ Index, which is designed to measure quality of life as well as economic ability and sustainability. These new measurements are expected to provide more accurate insights into​ development, living​standards, income​ distribution, and overall​ well-being within societies. ​ Source: Amit Kapoor and Bibek​ Debroy, "GDP Is Not a Measure of Human​ Well-Being," Harvard Business Review​, October​ 4, 2019. Refer to the Article Summary.​ Today's society is increasingly driven by the growing service​ sector, and this includes an increasing amount of information and entertainment delivered​ free-of-charge via social media. All else​ equal, these free services being provided by social media will result in GDP being​ ________ what it would be if consumers had to pay for these services.

lower than

Personal income is....

national income minus retained corporate earnings plus government transfer payments and interest on government bonds.

Disposable personal income is..

personal income minus personal taxes

When compared to the Great​ Depression, the typical length of unemployment in the modern​ (post-Great Depression-era) U.S. economy is

relatively brief

Unemployment rate... Suppose an economy is given by the following: Population: 292 million Labor force: 167 million number of employed people: 156.1 million number of unemployed people: 10.9 million Unemployment rate: ____

shows the percentage of the labor force that is considered unemployed 6.5%

Suppose that Sally J. Society recently lost her job as an underwater welder. In looking for a new​ job, she discovers that the only available jobs are for economists and that there are no openings for underwater welders because the trade is now obsolete. If Sally J. Society decides to return to school to earn an Economics​ degree, what is the best classification of her unemployment​ status?

st

Capital can be differentiated between physical capital and human capital. Human capital is... Which of the following is the best example of human​ capital?

the knowledge and skills workers acquire from education and training or from their life experiences a worker gets a college degree

Gross domestic product is best defined as.... What happens if we measure GDP by adding up the value of every good and service produced in the​ economy?

the market value of all final goods and services produced in a country during a period of​ time, typically one year. GDP is overestimated because of double counting.

The natural rate of unemployment.... When the economy is at full employment, unemployment is equal to...

the sum of structural unemployment and frictional unemployment the natural rate of unemployment

Real GDP is... Over​ time, prices may change relative to each other. To take this change into​ account, the Bureau of Economic Analysis calculates...

the value of goods and services evaluated at base year prices. real GDP using chain weights

Suppose that Apple and the investors buying the​ firm's bonds both expect a 4 percent inflation rate for the year. ​Further, suppose the nominal interest rate on bonds is 8 percent and the expected real interest rate is 4 percent. Now suppose that a year after the investors purchase the​ bonds, the inflation rate turns out to be 3 ​percent, rather than the 4 percent that had been expected. In this situation, investors ______ and borrowers ______.

win; lose

Economic historians Roger Ransom and Richard Sutch have estimated that​ African-American farmers in the U.S. South after the Civil War worked about 30 percent fewer hours per year than they had as slaves before the Civil War. If after the Civil​ War, African-American farmers had continued to work these additional​ hours, their production and income would have been higher and so would have been U.S. GDP. ​Source: Roger L. Ransom and Richard​ Sutch, One Kind of​ Freedom: The Economic Consequences of​Emancipation, Second​ edition, New​ York: Cambridge University​ Press, 2001. The​ farmers' well-being.. After the Civil​ War, U.S. GDP

would not have been higher as a result of working these additional hours because value of an​ individual's well-being is not included in GDP calculation. could have been higher if the farmers did not reduce their work hours.

Levi Strauss​ & Co. makes the denim fabric for some of its jeans in a factory in​ Greensboro, North​ Carolina, using cotton grown in the United States. The company then sends the denim fabric to a plant in​ China, where workers assemble the jeans. Does it matter in calculating GDP whether a pair of these jeans is bought in a New Yok store by either a U.S. citizen or a Canadian​ citizen? Briefly explain.

​No, what matters is that production of the jeans took place in the United States.