Exam 7: Taking the Nations Economic Pulse

Economists generally use GDP to measure a nation's total output because it is

The GDP deflator is designed to

Table 7-5 -Refer to Table 7-5. Gross national product equals

Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes

Which of the following would increase U.S. GDP?

An increase in the Consumer Price Index indicates that

In computing the consumer price index, a base year is chosen. Which of the following statements about the base year is correct?

Which of the following would increase GDP?

The reporter on one broadcast network says 2011 GDP increased to an all-time high. Commenting on the same figure, a second reporter says GDP in 2011 was less than in 2010. Which of the following explanations is consistent with the statements of both reporters?

If the GDP deflator in 2011 was 130 compared to a value of 100 during the 2005 base year, this would indicate that

GDP will tend to overstate the productive capacity of a country when

If national income accountants fail to make an adequate adjustment for increases in the quality of goods and services over time,

If you wanted to measure whether the output of an economy was increasing or decreasing across time periods, you would use the real GDP data rather than the nominal GDP data because

In 1980, the price of a gallon of gasoline was $1.25. The Consumer Price Index was 82.4 in 1980 compared to 215.3 in 2008 (1983 - 1984 = 100). Measured in 2008 dollars, the price of gasoline in 1980 was