Question 1

If nominal gross domestic product (GDP) changed by 6 percent and the price level changed by 2 percent,then real GDP changed by

Accepted Answer

A)   4 percent.
B)   3 percent.
C)   8 percent.
D)   12 percent.
E)   6 percent.

Question 2

When gross domestic product (GDP) increases,national income ________ and national output ________.

Accepted Answer

A)   is unaffected; is unaffected
B)   increases; increases
C)   decreases; decreases
D)   increases; is unaffected
E)   is unaffected; decreases

Question 3

When John buys new tires for his car it ________,and when Ford buys tires to put on new cars it ________.

Accepted Answer

A)   does not count toward GDP; does not count toward GDP
B)   does not count toward GDP; counts toward investment
C)   counts toward consumption; counts toward investment
D)   counts toward consumption; does not count toward GDP
E)   counts toward investment; counts toward investment

Question 4

Consider the following figure to answer the following questions: 
-During which period was the economy in a contraction?

Accepted Answer

A)   2001-2005
B)   2008-2009
C)   2004-2008
D)   2005-2008
E)   2000-2004

Question 5

Consider the following data, where gross domestic product (GDP)  values are measured in millions of dollars, to answer the following questions: 
-What was the growth rate of nominal gross domestic product (GDP) from 2010 to 2011? Round to the nearest second decimal.

Accepted Answer

A)   4.94 percent
B)   8.96 percent
C)   8.23 percent
D)   5.00 percent
E)   10.00 percent

Question 6

You bought a popular video game last year for $75 and sold it to a store this year for $20.The store sells the used game to a consumer for $40.When you sell your game to the store,how is this included in gross domestic product (GDP) ?

Accepted Answer

A)   as consumption
B)   as investment
C)   as government purchases
D)   as net exports
E)   This does not count in GDP.

Question 7

Gross domestic product (GDP) is an important indicator because it is used as a measure of all of the following EXCEPT

Accepted Answer

A)   economic growth.
B)   average living standards.
C)   business-cycle fluctuations.
D)   average income levels.
E)   environmental quality.

Question 8

The percent change in the overall level of prices in the economy is called

Accepted Answer

A)   the inflation rate.
B)   the growth rate of GDP.
C)   GDP.
D)   GDP per capita.
E)   the interest rate.

Question 9

Nominal gross domestic product (GDP) is equal to

Accepted Answer

A)   (current prices) *(base year output) .
B)   (current prices) *(current output) .
C)   (base prices) * (base year output) .
D)   (base year prices) /(current output) .
E)   (current output) / (base year prices) .

Question 10

Nominal gross domestic product (GDP) increased from $14.0 trillion to $14.7 trillion,and the price level increased from 120 to 126.Which of the following is true?

Accepted Answer

A)   Output grew faster than the price level.
B)   Output grew slower than the price level.
C)   Real GDP grew faster than nominal GDP.
D)   Output grew at the same rate as the price level.
E)   Real GDP grew at the same rate as nominal GDP.

Question 11

Gross domestic product (GDP) increases if prices decrease by ________ and quantities produced increase by ________.

Accepted Answer

A)   2 percent; 4 percent
B)   2 percent; 2 percent
C)   4 percent; 2 percent
D)   3 percent; 1 percent
E)   3 percent; 3 percent

Question 12

Which of the following represents the largest share of U.S.gross domestic product (GDP) ?

Accepted Answer

A)   services
B)   agricultural production
C)   the production of manufactured goods
D)   the production of physical goods
E)   the production of capital goods

Question 13

The consumption category of gross domestic product (GDP) includes all purchases of final goods and services by households EXCEPT

Accepted Answer

A)   new appliances.
B)   new houses.
C)   landscaping work.
D)   new cars.
E)   food.

Question 14

Consider the following data, where gross domestic product (GDP)  values are measured in millions of dollars, to answer the following questions: 
-What is the value of nominal gross domestic product (GDP) in 2009?

Accepted Answer

A)   $50,000 million
B)   $500 million
C)   $400 million
D)   $600 million
E)   $100 million

Question 15

The business cycle measures

Accepted Answer

A)   fluctuations in the long-run trend growth rate of GDP.
B)   fluctuations in the profit of businesses.
C)   fluctuations in consumption.
D)   short-run fluctuations in economic activity.
E)   fluctuations in the average tax rate paid by businesses.

Question 16

Explain why national output and national income are essentially the same thing.Why do exports to other nations not create a problem for this identity?

Accepted Answer

Every market transaction contributes to ...

Question 17

Nominal gross domestic product (GDP) increased from $15.76 trillion to $16.39 trillion,and the price level increased from 112.6 to 114.8.Which of the following is true?

Accepted Answer

A)   Output grew faster than the price level.
B)   Output grew slower than the price level.
C)   Real GDP grew faster than nominal GDP.
D)   Output grew at the same rate as the price level.
E)   Real GDP grew at the same rate as nominal GDP.

Question 18

Consider the following figure to answer the following questions: 
-In which year was it most likely the most difficult to find a job?

Accepted Answer

A)   2000
B)   2001
C)   2004
D)   2005
E)   2008

Question 19

Use the information in the table below to calculate the real 2015 gross domestic product (GDP),in 2009 dollars.Explain how the calculation is performed,and the reasoning behind it.

Accepted Answer

Nominal 2015 GDP was $17,937.8 billion.T...

Question 20

The phase of the business cycle where the economy is growing faster than usual is called

Accepted Answer

A)   an economic trough.
B)   the long-run trend of gross domestic product (GDP) .
C)   an economic expansion.
D)   an economic contraction.
E)   an economic peak.

Exam 19: Introduction to Macroeconomics and Gross Domestic Product

The consumption category of gross domestic product (GDP) includes all purchases of final goods and services by households EXCEPT

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Nominal gross domestic product (GDP) is equal to

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The phase of the business cycle where the economy is growing faster than usual is called

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When John buys new tires for his car it ________,and when Ford buys tires to put on new cars it ________.

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Consider the following figure to answer the following questions: -In which year was it most likely the most difficult to find a job?

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Gross domestic product (GDP) increases if prices decrease by ________ and quantities produced increase by ________.

Correct AnswerverifiedShow Answer

Explain why national output and national income are essentially the same thing.Why do exports to other nations not create a problem for this identity?

Correct AnswerverifiedEvery market transaction contributes to ...View AnswerShow Answer

The business cycle measures

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Nominal gross domestic product (GDP) increased from $14.0 trillion to $14.7 trillion,and the price level increased from 120 to 126.Which of the following is true?

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Consider the following figure to answer the following questions: -During which period was the economy in a contraction?

Correct AnswerverifiedShow Answer

Use the information in the table below to calculate the real 2015 gross domestic product (GDP),in 2009 dollars.Explain how the calculation is performed,and the reasoning behind it.

Correct AnswerverifiedNominal 2015 GDP was $17,937.8 billion.T...View AnswerShow Answer

Nominal gross domestic product (GDP) increased from $15.76 trillion to $16.39 trillion,and the price level increased from 112.6 to 114.8.Which of the following is true?

Correct AnswerverifiedShow Answer

The percent change in the overall level of prices in the economy is called

Correct AnswerverifiedShow Answer

Gross domestic product (GDP) is an important indicator because it is used as a measure of all of the following EXCEPT

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You bought a popular video game last year for $75 and sold it to a store this year for $20.The store sells the used game to a consumer for $40.When you sell your game to the store,how is this included in gross domestic product (GDP) ?

Correct AnswerverifiedShow Answer

Which of the following represents the largest share of U.S.gross domestic product (GDP) ?

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Consider the following data, where gross domestic product (GDP) values are measured in millions of dollars, to answer the following questions: -What was the growth rate of nominal gross domestic product (GDP) from 2010 to 2011? Round to the nearest second decimal.

Correct AnswerverifiedShow Answer

When gross domestic product (GDP) increases,national income ________ and national output ________.

Correct AnswerverifiedShow Answer

Consider the following data, where gross domestic product (GDP) values are measured in millions of dollars, to answer the following questions: -What is the value of nominal gross domestic product (GDP) in 2009?

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If nominal gross domestic product (GDP) changed by 6 percent and the price level changed by 2 percent,then real GDP changed by

Correct AnswerverifiedShow Answer

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When John buys new tires for his car it ,and when Ford buys tires to put on new cars it .

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Gross domestic product (GDP) increases if prices decrease by and quantities produced increase by .

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Every market transaction contributes to ...
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Nominal 2015 GDP was $17,937.8 billion.T...
View Answer

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When gross domestic product (GDP) increases,national income and national output .

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