Question 1

If private domestic saving is 960, private domestic investment is 780, and the government spends 300 more than it receives in tax revenues, then it follows that

Accepted Answer

A) the trade deficit is 120 
B) the trade deficit is 300 
C) the trade deficit is 420 
D) the trade surplus is 120 
E) the trade surplus is 180 
A) the trade deficit is 120 
B) the trade deficit is 300 
C) the trade deficit is 420 
D) the trade surplus is 120 
E) the trade surplus is 180

Question 2

The difference between gross investment and net investment is

Accepted Answer

A) the same as the difference between GDP and disposable income 
B) the same as the difference between disposable income and consumption 
C) the same as the difference between NDP and national income 
D) the same as the difference between net and gross exports 
E) equal to capital consumption allowances 
A) the same as the difference between GDP and disposable income 
B) the same as the difference between disposable income and consumption 
C) the same as the difference between NDP and national income 
D) the same as the difference between net and gross exports 
E) equal to capital consumption allowances

Question 3

If national income is 5,200, disposable income is 4,400, consumption is 4,100, the trade deficit is 110, and the budget deficit is 150, what is the level of private domestic investment?

Accepted Answer

A) 1,060 
B) 540 
C) 300 
D) 260 
E) 40 
A) 1,060 
B) 540 
C) 300 
D) 260 
E) 40

Question 4

Assume the budget deficit increases.Which of the following can happen?

Accepted Answer

A) private domestic saving can increase 
B) private domestic investment can decrease 
C) imports can increase 
D) exports can decrease 
E) all of the above 
A) private domestic saving can increase 
B) private domestic investment can decrease 
C) imports can increase 
D) exports can decrease 
E) all of the above

Question 5

In 1994, U.S.GDP was $6,931, GNP was $6,922, NNP was $6,104, and national income was $5,495 (all numbers are in billions of dollars).We can conclude that

Accepted Answer

A) depreciation was $818 billion 
B) depreciation was $1,436 billion 
C) the addition to the capital stock was $1,436 billion 
D) the addition to the capital stock was $1,427 billion 
E) indirect business taxes were $9 billion 
A) depreciation was $818 billion 
B) depreciation was $1,436 billion 
C) the addition to the capital stock was $1,436 billion 
D) the addition to the capital stock was $1,427 billion 
E) indirect business taxes were $9 billion

Question 6

In the United States, annual per-capita GDP in 2012 was around

Accepted Answer

A) $15,700 
B) $38,400 
C) $49,800 
D) $54,200 
E) $58,600 
A) $15,700 
B) $38,400 
C) $49,800 
D) $54,200 
E) $58,600

Question 7

The CPI, a price index used to measure inflation, is imperfect since

Accepted Answer

A) it only measures those goods that are included in the market basket 
B) it does not take into account quality improvements 
C) many payments are already indexed for inflation 
D) it does not include services 
E) only A and B 
A) it only measures those goods that are included in the market basket 
B) it does not take into account quality improvements 
C) many payments are already indexed for inflation 
D) it does not include services 
E) only A and B

Question 8

As defined in our text, private domestic investment (I) does NOT include

Accepted Answer

A) new residential construction except on farms 
B) movable machinery such as trucks or tractors 
C) inventory accumulation, unless it was planned or intended 
D) investment in labor productivity through education and training 
E) new additions to existing factories 
A) new residential construction except on farms 
B) movable machinery such as trucks or tractors 
C) inventory accumulation, unless it was planned or intended 
D) investment in labor productivity through education and training 
E) new additions to existing factories

Question 9

The GDP-deflator and the producer price index (PPI) differ since

Accepted Answer

A) the PPI measures a fixed market basket but the GDP-deflator doesn't 
B) the GDP-deflator includes imported goods but the PPI doesn't 
C) the PPI includes more goods than the GDP-deflator 
D) the GDP-deflator does not include services but the PPI does 
E) the GDP-deflator measures increases in inflation earlier than the PPI 
A) the PPI measures a fixed market basket but the GDP-deflator doesn't 
B) the GDP-deflator includes imported goods but the PPI doesn't 
C) the PPI includes more goods than the GDP-deflator 
D) the GDP-deflator does not include services but the PPI does 
E) the GDP-deflator measures increases in inflation earlier than the PPI

Question 10

The unemployment rate is most likely to decrease if

Accepted Answer

A) the number of people who are out of work but expecting to be recalled from a layoff increases 
B) the number of people living in the country increases 
C) the labor force decreases more than the overall population 
D) more people who are currently out of work decide to give up looking for a job 
E) none of the above 
A) the number of people who are out of work but expecting to be recalled from a layoff increases 
B) the number of people living in the country increases 
C) the labor force decreases more than the overall population 
D) more people who are currently out of work decide to give up looking for a job 
E) none of the above

If private domestic saving is 960, private domestic investment is 780, and the government spends 300 more than it receives in tax revenues, then it follows that

The difference between gross investment and net investment is

If national income is 5,200, disposable income is 4,400, consumption is 4,100, the trade deficit is 110, and the budget deficit is 150, what is the level of private domestic investment?

Assume the budget deficit increases.Which of the following can happen?

In 1994, U.S.GDP was $6,931, GNP was $6,922, NNP was $6,104, and national income was $5,495 (all numbers are in billions of dollars).We can conclude that

In the United States, annual per-capita GDP in 2012 was around

The CPI, a price index used to measure inflation, is imperfect since

As defined in our text, private domestic investment (I) does NOT include

The GDP-deflator and the producer price index (PPI) differ since

The unemployment rate is most likely to decrease if

Introduction

Growth and accumulation

Growth and policy

Aggregate supply and demand

Aggregate supply and the phillips curve

Unemployment

Inflation

Policy preview

Income and spending

Money, interest, and income

Monetary and fiscal policy

International linkages

Consumption and saving

Investment spending

The demand for money

The fed, money, and credit

Policy

Financial markets and asset prices

The national debt

Recession and depression

Inflation and hyperinflation

International adjustment and interdependence

Advanced topics

Filters

Exam 2: National income accounting

If private domestic saving is 960, private domestic investment is 780, and the government spends 300 more than it receives in tax revenues, then it follows that

The difference between gross investment and net investment is

If national income is 5,200, disposable income is 4,400, consumption is 4,100, the trade deficit is 110, and the budget deficit is 150, what is the level of private domestic investment?

Assume the budget deficit increases.Which of the following can happen?

In 1994, U.S.GDP was $6,931, GNP was $6,922, NNP was $6,104, and national income was $5,495 (all numbers are in billions of dollars).We can conclude that

In the United States, annual per-capita GDP in 2012 was around

The CPI, a price index used to measure inflation, is imperfect since

As defined in our text, private domestic investment (I) does NOT include

The GDP-deflator and the producer price index (PPI) differ since

The unemployment rate is most likely to decrease if

Introduction

Growth and accumulation

Growth and policy

Aggregate supply and demand

Aggregate supply and the phillips curve

Unemployment

Inflation

Policy preview

Income and spending

Money, interest, and income

Monetary and fiscal policy

International linkages

Consumption and saving

Investment spending

The demand for money

The fed, money, and credit

Policy

Financial markets and asset prices

The national debt

Recession and depression

Inflation and hyperinflation

International adjustment and interdependence

Advanced topics

Filters