Exam 7: GDP and the CPI: Tracking the Macroeconomy

Use the following to answer questions: -(Figure 7-1: Circular-Flow Model) Use Figure 7-1: Circular-Flow Model. If the circular-flow model is in equilibrium (the sum of money flowing into each box is equal to the sum of the money flowing out of it) and there is a decrease in investment spending, holding everything else constant, which outcome is likely to occur?

Use the following to answer questions: -(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. If 2014 is the base year, real GDP in 2013 was:

A laptop computer purchased by a private individual for personal use is considered to be:

Which transaction is included in a current year's GDP as investment spending?

Suppose that, in year 1, an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next year, the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each. The growth rate of nominal GDP from year 1 to year 2 is _____%.

Use the following to answer questions: -(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. The growth rate of nominal GDP from 2013 to 2014 was _____%.

In the United States:

Value added in national income accounts refers to the:

The national income and product accounts keep track of:

The national income and product accounts keep track of:

Use the following to answer questions: -(Table: Per Capita GDP) Use Table: Per Capita GDP. Per capita real GDP in 2014 was:

Which item is included in GDP?

Which statement about gross domestic product is FALSE?

Included in GDP is the dollar value of:

The circular-flow diagram is important because it shows that the flow of money into each market or sector of the economy is _____ the flow of money coming out of that sector.

In the factor markets:

Which definition BEST describes GDP?

The national accounts do NOT keep track of:

Suppose that, in year 1, an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next year, the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each. The value of nominal GDP in years 1 and 2, respectively, is:

If nominal GDP decreases from one year to the next, _____ must have fallen.