Macroeconomics

The sale of American-grown corn to China is included in the ________ category of GDP. A) investment B) consumption C) export D) import E) government purchases

C

If real GDP grew by 2% and the inflation rate was 2%, then nominal GDP grew by: A) 4%. B) 3%. C) 2%. D) 0%. E) 1%.

A

Net exports can be defined as: A) exports minus imports. B) exports divided by imports. C) imports divided by exports. D) imports minus exports. E) exports plus imports.

A

Which of the following is included in the government purchases category of GDP? A) payments to people in the military B) payments to unemployed workers C) welfare payments D) Social Security payments E) interest on the national debt

A

Suppose that the consumer price index of a country was 160 at year X and 164 at the end of year Y. What was the country's inflation rate during year Y? A) 5% B) 2.5% C) 32% D) 164% E) 64%

B

The consumer price index (CPI) is: A) a measure of food prices, because food is what is consumed. B) a measure of all prices in the economy. C) the measure of consumer prices in both rural and urban areas; it is calculated by adding up all prices. D) a measure of the price level based on the consumption patterns of a typical consumer. E) a measure of food, clothing, and housing prices.

D

Which is the largest component of U.S. GDP? A) government purchases B) investment C) exports D) consumption E) imports

D

Real GDP is GDP adjusted for changes in: A) overall employment levels. B) the level of unemployment. C) overall output levels. D) the level of the interest rate. E) overall price levels.

E

The four major expenditure categories of GDP are: A) consumption, government purchases, taxes, and investment. B) consumption, investment, government purchases, and stocks. C) consumption, investment, taxes, and net exports. D) consumption, imports, exports, and government purchases. E) consumption, investment, government purchases, and net exports.

E

The root cause of cyclical unemployment is: A) unemployment insurance. B) delays in matching available workers with open jobs. C) changes in the industrial makeup of the economy. D) labor market regulations. E) recessions.

E