Question 1

Additions to inventory is

Accepted Answer

A) counted as an intermediate input. 
B) considered national savings. 
C) not counted as an expenditure in GDP accounting. 
D) counted as a component of investment spending. 
E) subtracted from sales revenue in calculating profit income. 
A) counted as an intermediate input. 
B) considered national savings. 
C) not counted as an expenditure in GDP accounting. 
D) counted as a component of investment spending. 
E) subtracted from sales revenue in calculating profit income.

Question 2

Real GDP values current production at

Accepted Answer

A) base year prices. 
B) the average of price levels over the entire sample period. 
C) current year prices. 
D) the purchase price not the asking prices of goods and services. 
E) the best estimate of next year's prices. 
A) base year prices. 
B) the average of price levels over the entire sample period. 
C) current year prices. 
D) the purchase price not the asking prices of goods and services. 
E) the best estimate of next year's prices.

Question 3

For the following question(s), suppose that an economy produces only food and clothing, and that price and quantity data
are given in the table below.  
-Year 1 nominal GDP is

Accepted Answer

A) $270. 
B) $310. 
C) $390. 
D) $450. 
E) $200. 
A) $270. 
B) $310. 
C) $390. 
D) $450. 
E) $200.

Question 4

If a particular measure of real GDP consistently underestimates growth in real GDP, then the rate of inflation as measured by the GDP deflator

Accepted Answer

A) will be overestimated and underestimated equally often. 
B) is not a good predictor of the inflation rate in the CPI. 
C) will consistently be underestimated. 
D) cannot be calculated. 
E) will consistently be overestimated. 
A) will be overestimated and underestimated equally often. 
B) is not a good predictor of the inflation rate in the CPI. 
C) will consistently be underestimated. 
D) cannot be calculated. 
E) will consistently be overestimated.

Question 5

The components of consumption expenditures include

Accepted Answer

A) investment in stocks and bonds. 
B) nondurable goods consumption. 
C) purchases of used cars and books. 
D) donations. 
E) government consumption. 
A) investment in stocks and bonds. 
B) nondurable goods consumption. 
C) purchases of used cars and books. 
D) donations. 
E) government consumption.

Question 6

In Canada, real GDP is currently calculated using

Accepted Answer

A) a chain-weighting scheme. 
B) an autoregressive scheme. 
C) a variable-weighting scheme. 
D) constant-inflation scheme. 
E) a fixed-weighting scheme. 
A) a chain-weighting scheme. 
B) an autoregressive scheme. 
C) a variable-weighting scheme. 
D) constant-inflation scheme. 
E) a fixed-weighting scheme.

Question 7

Suppose that GDP is equal to 1,000, national saving is equal to 200, the current account deficit is equal to 100, and the government budget deficit is equal to 50. Investment must equal

Accepted Answer

A) 200. 
B) 150. 
C) 250. 
D) 300. 
E) 350. 
A) 200. 
B) 150. 
C) 250. 
D) 300. 
E) 350.

Question 8

For the following question(s), suppose that an economy produces only bread and computers. Assume that all production is
consumed in each year, and that price and quantity data are given in the table below. $$\begin{array}{l}
\text { Year } 1\
\begin{array} { | l | c | c | } 
\hline \text { Good } & \text { Quantity } & \text { Price } \
\hline \text { Bread } & 30 & \$ 10 \
\hline \text { Computers } & 10 & \$ 50 \
\hline
\end{array}\\
\begin{array} { l } 
 { \text { Year 2 } } \
\begin{array} { | l | c | c | } 
\hline \text { Good } & \text { Quantity } & \text { Price } \
\hline \text { Bread } & 40 & \$ 15 \
\hline \text { Computers } & 30 & \$ 60 \
\hline
\end{array}
\end{array}
\end{array}$$
-If Year 1 is the base year, the GDP price deflator for Year 2 is approximately

Accepted Answer

A) 181.0. 
B) 131.3. 
C) 126.3. 
D) 211.0. 
E) 100.0. 
A) 181.0. 
B) 131.3. 
C) 126.3. 
D) 211.0. 
E) 100.0.

Question 9

GDP is published by Statistics Canada as part of the

Accepted Answer

A) Labour Force Statistics. 
B) National Income and Expenditure Accounts (NIE
A) . 
C) Current Population Survey. 
D) GDP Statistical Review. 
E) Survey of Current Business. 
A) Labour Force Statistics. 
B) National Income and Expenditure Accounts (NIE
A) . 
C) Current Population Survey. 
D) GDP Statistical Review. 
E) Survey of Current Business.

Question 10

Investment spending is

Accepted Answer

A) much more volatile than consumption spending. 
B) equally volatile as GDP. 
C) less volatile than consumption spending. 
D) a larger fraction of GDP than consumption is. 
E) equally as volatile as government spending. 
A) much more volatile than consumption spending. 
B) equally volatile as GDP. 
C) less volatile than consumption spending. 
D) a larger fraction of GDP than consumption is. 
E) equally as volatile as government spending.

Question 11

In 2017, which of the following comprised less than 5% of GDP?

Accepted Answer

A) imports 
B) net exports 
C) exports 
D) government spending 
E) investment 
A) imports 
B) net exports 
C) exports 
D) government spending 
E) investment

Question 12

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by
this table: $$\begin{array} { | l | l | l | } 
\hline & \text { Pens } & \text { Pencils } \
\hline \text { Year 1 quantity } & 15 & 10 \
\hline \text { Year 1 price } & \$ 12 & \$ 12 \
\hline \text { Year 2 quantity } & 17 & 12 \
\hline \text { Year 2 price } & \$ 14 & \$ 15 \
\hline
\end{array}$$
-What is the real GDP in year 2 using base year 2?

Accepted Answer

A) $414 
B) $418 
C) $338 
D) $300 
E) $360 
A) $414 
B) $418 
C) $338 
D) $300 
E) $360

Question 13

Changes in the relative prices of goods causes problems measuring real GDP because

Accepted Answer

A) they tend to be inaccurate. 
B) firms produce more of the cheaper good. 
C) consumers buy less of the cheaper good. 
D) consumers change their buying habits. 
E) price deflators only measure the price level. 
A) they tend to be inaccurate. 
B) firms produce more of the cheaper good. 
C) consumers buy less of the cheaper good. 
D) consumers change their buying habits. 
E) price deflators only measure the price level.

Question 14

The expenditure approach to calculating GDP includes

Accepted Answer

A) consumption. 
B) taxes. 
C) intermediate goods. 
D) wage income. 
E) net factor payments. 
A) consumption. 
B) taxes. 
C) intermediate goods. 
D) wage income. 
E) net factor payments.

Question 15

Value added is equal to the value of a firm's production minus

Accepted Answer

A) all of its costs of production. 
B) costs of production. 
C) investment expenditures. 
D) intermediate goods used in production. 
E) labour costs. 
A) all of its costs of production. 
B) costs of production. 
C) investment expenditures. 
D) intermediate goods used in production. 
E) labour costs.

Question 16

To calculate value added, we need to subtract

Accepted Answer

A) the cost of domestic- and foreign-produced intermediate inputs. 
B) the cost of all goods and services exported. 
C) only the cost of domestically produced intermediate inputs. 
D) only the cost of foreign-produced intermediate inputs. 
E) total imports. 
A) the cost of domestic- and foreign-produced intermediate inputs. 
B) the cost of all goods and services exported. 
C) only the cost of domestically produced intermediate inputs. 
D) only the cost of foreign-produced intermediate inputs. 
E) total imports.

Question 17

To calculate the change in chain-weighted real GDP from one year to the next, we use

Accepted Answer

A) first-year prices. 
B) base-year prices. 
C) second-year prices. 
D) the percentage change in prices from the first year to the second. 
E) average prices over the two years. 
A) first-year prices. 
B) base-year prices. 
C) second-year prices. 
D) the percentage change in prices from the first year to the second. 
E) average prices over the two years.

Question 18

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by
this table: $$\begin{array} { | l | l | l | } 
\hline & \text { Pens } & \text { Pencils } \
\hline \text { Year 1 quantity } & 15 & 10 \
\hline \text { Year 1 price } & \$ 12 & \$ 12 \
\hline \text { Year 2 quantity } & 17 & 12 \
\hline \text { Year 2 price } & \$ 14 & \$ 15 \
\hline
\end{array}$$
-What is the real GDP in year 1 using base year 1?

Accepted Answer

A) $418 
B) $338 
C) $300 
D) $294 
E) $360 
A) $418 
B) $338 
C) $300 
D) $294 
E) $360

Question 19

The income approach to calculating GDP is

Accepted Answer

A) the sum of all consumer income earned. 
B) the sum of all incomes earned from production. 
C) net of taxes. 
D) the sum of all business income earned. 
E) all the spending on goods and services earned by consumer's income. 
A) the sum of all consumer income earned. 
B) the sum of all incomes earned from production. 
C) net of taxes. 
D) the sum of all business income earned. 
E) all the spending on goods and services earned by consumer's income.

Question 20

The value of a producer's output minus the value of all intermediate goods used in the production of that output is called the producer's

Accepted Answer

A) profit margin. 
B) accounting profit. 
C) costs of production. 
D) value added. 
E) net output. 
A) profit margin. 
B) accounting profit. 
C) costs of production. 
D) value added. 
E) net output.

Additions to inventory is

Real GDP values current production at

For the following question(s), suppose that an economy produces only food and clothing, and that price and quantity data are given in the table below. -Year 1 nominal GDP is

If a particular measure of real GDP consistently underestimates growth in real GDP, then the rate of inflation as measured by the GDP deflator

The components of consumption expenditures include

In Canada, real GDP is currently calculated using

Suppose that GDP is equal to 1,000, national saving is equal to 200, the current account deficit is equal to 100, and the government budget deficit is equal to 50. Investment must equal

GDP is published by Statistics Canada as part of the

Investment spending is

In 2017, which of the following comprised less than 5% of GDP?

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: Pens Pencils Year 1 quantity 15 10 Year 1 price \ 12 \ 12 Year 2 quantity 17 12 Year 2 price \ 14 \ 15 -What is the real GDP in year 2 using base year 2?

Changes in the relative prices of goods causes problems measuring real GDP because

The expenditure approach to calculating GDP includes

Value added is equal to the value of a firm's production minus

To calculate value added, we need to subtract

To calculate the change in chain-weighted real GDP from one year to the next, we use

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: Pens Pencils Year 1 quantity 15 10 Year 1 price \ 12 \ 12 Year 2 quantity 17 12 Year 2 price \ 14 \ 15 -What is the real GDP in year 1 using base year 1?

The income approach to calculating GDP is

The value of a producer's output minus the value of all intermediate goods used in the production of that output is called the producer's

Introduction

Business Cycle Measurement

Consumer and Firm Behavior: the Workleisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: the Consumptionsavings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model With Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models With Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: a Deeper Look

Filters

Exam 2: Measurement

Additions to inventory is

Real GDP values current production at

For the following question(s), suppose that an economy produces only food and clothing, and that price and quantity data are given in the table below. -Year 1 nominal GDP is

If a particular measure of real GDP consistently underestimates growth in real GDP, then the rate of inflation as measured by the GDP deflator

The components of consumption expenditures include

In Canada, real GDP is currently calculated using

Suppose that GDP is equal to 1,000, national saving is equal to 200, the current account deficit is equal to 100, and the government budget deficit is equal to 50. Investment must equal

GDP is published by Statistics Canada as part of the

Investment spending is

In 2017, which of the following comprised less than 5% of GDP?

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: Pens Pencils Year 1 quantity 15 10 Year 1 price \ 12 \ 12 Year 2 quantity 17 12 Year 2 price \ 14 \ 15 -What is the real GDP in year 2 using base year 2?

Changes in the relative prices of goods causes problems measuring real GDP because

The expenditure approach to calculating GDP includes

Value added is equal to the value of a firm's production minus

To calculate value added, we need to subtract

To calculate the change in chain-weighted real GDP from one year to the next, we use

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table: Pens Pencils Year 1 quantity 15 10 Year 1 price \ 12 \ 12 Year 2 quantity 17 12 Year 2 price \ 14 \ 15 -What is the real GDP in year 1 using base year 1?

The income approach to calculating GDP is

The value of a producer's output minus the value of all intermediate goods used in the production of that output is called the producer's

Introduction

Business Cycle Measurement

Consumer and Firm Behavior: the Workleisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: the Consumptionsavings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model With Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models With Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: a Deeper Look

Filters