Question 1

Based on the data in Table 2-7,recessions in the U.S.are

Accepted Answer

A) irregular in length but evenly spaced. 
B) rare. 
C) regularly spaced and regular in length. 
D) irregular in length and irregularly spaced. 
A) irregular in length but evenly spaced. 
B) rare. 
C) regularly spaced and regular in length. 
D) irregular in length and irregularly spaced.

Question 2

In the base year,the relationship between nominal and real GDP is

Accepted Answer

A) uncertain. 
B) one of equality. 
C) real GDP is higher. 
D) nominal GDP is higher. 
A) uncertain. 
B) one of equality. 
C) real GDP is higher. 
D) nominal GDP is higher.

Question 3

Suppose that Apple computer buys computer components for $10,000 and uses them to make ipods that they sell to Best Buy for $30,000.Best Buy sells these ipods for $32,000.As a result,GDP has risen by:

Accepted Answer

A) $22,000 
B) $2,000 
C) $20,000 
D) $32,000 
A) $22,000 
B) $2,000 
C) $20,000 
D) $32,000

Question 4

Business fixed investment

Accepted Answer

A) includes the building of single- and multi-family housing units. 
B) is the change in business inventories. 
C) is the smallest subcomponent of investment. 
D) consists of purchases of a newly produced plant and equipment. 
A) includes the building of single- and multi-family housing units. 
B) is the change in business inventories. 
C) is the smallest subcomponent of investment. 
D) consists of purchases of a newly produced plant and equipment.

Question 5

Which of the following are not included as a component of national income?

Accepted Answer

A) Corporate profits 
B) Compensation of employees 
C) Net interest income 
D) Capital gains and capital losses 
A) Corporate profits 
B) Compensation of employees 
C) Net interest income 
D) Capital gains and capital losses

Question 6

In the U.S.,the largest share of national income is earned in the form of

Accepted Answer

A) taxes on production. 
B) wages and salary. 
C) interest earned on capital. 
D) corporate profits. 
A) taxes on production. 
B) wages and salary. 
C) interest earned on capital. 
D) corporate profits.

Question 7

Personal income equals personal disposable income plus

Accepted Answer

A) payroll taxes. 
B) transfer payments. 
C) dividend payments. 
D) personal saving. 
E) personal taxes. 
A) payroll taxes. 
B) transfer payments. 
C) dividend payments. 
D) personal saving. 
E) personal taxes.

Question 8

National income is defined as gross national product minus

Accepted Answer

A) depreciation and net taxes. 
B) national income. 
C) depreciation. 
D) personal disposable income. 
A) depreciation and net taxes. 
B) national income. 
C) depreciation. 
D) personal disposable income.

Question 9

When moving from gross domestic product to gross national product,one has to

Accepted Answer

A) add earnings by foreign residents and firms in the United States. 
B) subtract earnings by foreign residents and firms in the United States. 
C) subtract foreign earnings of U.S.residents and firms. 
D) add foreign earnings of U.S.residents and firms. 
E) Both b and d 
A) add earnings by foreign residents and firms in the United States. 
B) subtract earnings by foreign residents and firms in the United States. 
C) subtract foreign earnings of U.S.residents and firms. 
D) add foreign earnings of U.S.residents and firms. 
E) Both b and d

Question 10

A recession is a period when

Accepted Answer

A) output growth is negative for two consecutive quarters 
B) actual output falls below potential output and the rate of unemployment falls below the high- employment benchmark. 
C) unemployment reaches 10 percent for an extended period of time. 
D) actual output falls below potential output and the rate of unemployment rises above the high-employment benchmark.. 
A) output growth is negative for two consecutive quarters 
B) actual output falls below potential output and the rate of unemployment falls below the high- employment benchmark. 
C) unemployment reaches 10 percent for an extended period of time. 
D) actual output falls below potential output and the rate of unemployment rises above the high-employment benchmark..

Question 11

Possible sources of an upward bias in the CPI include the

Accepted Answer

A) quantity adjustment bias. 
B) substitution bias. 
C) new products bias. 
D) Both b and c 
E) All of the above 
A) quantity adjustment bias. 
B) substitution bias. 
C) new products bias. 
D) Both b and c 
E) All of the above

Question 12

To calculate personal savings,you would need information on all of the following except:

Accepted Answer

A) personal disposable income. 
B) personal consumption expenditures. 
C) interest paid to business. 
D) government expenditure. 
E) personal transfer payments to foreigners. 
A) personal disposable income. 
B) personal consumption expenditures. 
C) interest paid to business. 
D) government expenditure. 
E) personal transfer payments to foreigners.

Question 13

The value of every monetary transaction in the economy would be included in

Accepted Answer

A) GDP. 
B) potential GDP. 
C) personal income. 
D) national income. 
E) None of the above. 
A) GDP. 
B) potential GDP. 
C) personal income. 
D) national income. 
E) None of the above.

Question 14

Policymakers utilize gross domestic product figures

Accepted Answer

A) to monitor recessions and expansions. 
B) as a means to measure welfare. 
C) to observe long-run growth trends. 
D) Both a and c 
E) All of the above 
A) to monitor recessions and expansions. 
B) as a means to measure welfare. 
C) to observe long-run growth trends. 
D) Both a and c 
E) All of the above

Question 15

Inventory investment is

Accepted Answer

A) never positive. 
B) often negative. 
C) can be either negative or positive. 
D) always positive. 
A) never positive. 
B) often negative. 
C) can be either negative or positive. 
D) always positive.

Question 16

Potential output

Accepted Answer

A) is defined as the level of real output that the economy could produce at high rates of resource utilization. 
B) only occurs when both the unemployment rate and inflation rate are zero. 
C) can be estimated by choosing benchmark measures of high resource utilization. 
D) Both a and c 
A) is defined as the level of real output that the economy could produce at high rates of resource utilization. 
B) only occurs when both the unemployment rate and inflation rate are zero. 
C) can be estimated by choosing benchmark measures of high resource utilization. 
D) Both a and c

Question 17

If the nominal GDP is $12,000 in 2005 and $15,000 in 2006,and if inflation is 10% between these years,then

Accepted Answer

A) employment fell between 2005 and 2006. 
B) real GDP fell between 2005 and 2006. 
C) real GDP rose between 2005 and 2006. 
D) the economy experienced no growth between these years. 
E) everyone is rich now than they were before. 
A) employment fell between 2005 and 2006. 
B) real GDP fell between 2005 and 2006. 
C) real GDP rose between 2005 and 2006. 
D) the economy experienced no growth between these years. 
E) everyone is rich now than they were before.

Question 18

Which of the following would be included in GDP?

Accepted Answer

A) Production of computers by IBM in Japan 
B) The value of a car. 
C) The commission on the sale of your house. 
D) The value of childcare provided at home by the child's mother. 
A) Production of computers by IBM in Japan 
B) The value of a car. 
C) The commission on the sale of your house. 
D) The value of childcare provided at home by the child's mother.

Question 19

If a US citizen is employed by a US company in Russia,the income she earns is:

Accepted Answer

A) part of US GNP and Russian GDP. 
B) part of US GNP and Russian GNP. 
C) part of US GDP and Russi GNP 
D) part of US GDP and Russia GDP. 
A) part of US GNP and Russian GDP. 
B) part of US GNP and Russian GNP. 
C) part of US GDP and Russi GNP 
D) part of US GDP and Russia GDP.

Question 20

The investment component of GDP includes

Accepted Answer

A) residential construction investment. 
B) inventory investment. 
C) business fixed investment. 
D) Both b and c 
E) All of the above 
A) residential construction investment. 
B) inventory investment. 
C) business fixed investment. 
D) Both b and c 
E) All of the above

Based on the data in Table 2-7,recessions in the U.S.are

In the base year,the relationship between nominal and real GDP is

Suppose that Apple computer buys computer components for $10,000 and uses them to make ipods that they sell to Best Buy for $30,000.Best Buy sells these ipods for $32,000.As a result,GDP has risen by:

Business fixed investment

Which of the following are not included as a component of national income?

In the U.S.,the largest share of national income is earned in the form of

Personal income equals personal disposable income plus

National income is defined as gross national product minus

When moving from gross domestic product to gross national product,one has to

A recession is a period when

Possible sources of an upward bias in the CPI include the

To calculate personal savings,you would need information on all of the following except:

The value of every monetary transaction in the economy would be included in

Policymakers utilize gross domestic product figures

Inventory investment is

Potential output

If the nominal GDP is $12,000 in 2005 and $15,000 in 2006,and if inflation is 10% between these years,then

Which of the following would be included in GDP?

If a US citizen is employed by a US company in Russia,the income she earns is:

The investment component of GDP includes

Introduction

Classical Macroeconomics I: Output and Employment

Classical Macroeconomics II: Money,prices,and Interest

Keynesian System I: the Role of Aggregate Demand

Keynesian System II: Money,interest,and Income

Keynesian System III: Policy Effects in the Is-Lm Model

Keynesian System Iv: Aggregate Supply and Demand

The Monetarist Counterrevolution

Output,inflation,and Unemployment: Alternative Views

New Classical Economics

Real Business Cycles and New Keynesian Economics

Macroeconomic Models:a Summary

Exchange Rates and the International Monetary System

Monetary and Fiscal Policy in the Open Economy

Money,the Banking System,and Interest Rates

Optimal Monetary Policy

Fiscal Policy

Policies for Intermediate-Run Growth

Long-Run Economic Growth: Origins of the Wealth of Nations

Filters

Exam 2: Measurement of Macroeconomic Variables

Based on the data in Table 2-7,recessions in the U.S.are

In the base year,the relationship between nominal and real GDP is

Suppose that Apple computer buys computer components for $10,000 and uses them to make ipods that they sell to Best Buy for $30,000.Best Buy sells these ipods for $32,000.As a result,GDP has risen by:

Business fixed investment

Which of the following are not included as a component of national income?

In the U.S.,the largest share of national income is earned in the form of

Personal income equals personal disposable income plus

National income is defined as gross national product minus

When moving from gross domestic product to gross national product,one has to

A recession is a period when

Possible sources of an upward bias in the CPI include the

To calculate personal savings,you would need information on all of the following except:

The value of every monetary transaction in the economy would be included in

Policymakers utilize gross domestic product figures

Inventory investment is

Potential output

If the nominal GDP is $12,000 in 2005 and $15,000 in 2006,and if inflation is 10% between these years,then

Which of the following would be included in GDP?

If a US citizen is employed by a US company in Russia,the income she earns is:

The investment component of GDP includes

Introduction

Classical Macroeconomics I: Output and Employment

Classical Macroeconomics II: Money,prices,and Interest

Keynesian System I: the Role of Aggregate Demand

Keynesian System II: Money,interest,and Income

Keynesian System III: Policy Effects in the Is-Lm Model

Keynesian System Iv: Aggregate Supply and Demand

The Monetarist Counterrevolution

Output,inflation,and Unemployment: Alternative Views

New Classical Economics

Real Business Cycles and New Keynesian Economics

Macroeconomic Models:a Summary

Exchange Rates and the International Monetary System

Monetary and Fiscal Policy in the Open Economy

Money,the Banking System,and Interest Rates

Optimal Monetary Policy

Fiscal Policy

Policies for Intermediate-Run Growth

Long-Run Economic Growth: Origins of the Wealth of Nations

Filters