Exam 13: Measuring an Economys Performance

If the Consumer Price Index (CPI) in January 2017 was 243 and the rate of inflation between January 2017 and January 2018 was 10 percent, then the CPI in January 2018 was:

Which one of the following statements is NOT true?

If the nominal wage of a worker increases by 10 percent and her purchasing power increases by 5 percent, then we can conclude that the price level must have _____ than 10 percent.

Dell Computers manufactures a $1,000 laptop in December 2017. This laptop is sold to a consumer in March 2018 for $1,000, who in turn sells it on eBay in August 2018 for $800. Because of these transactions, the 2017 GDP increases by _____, and the 2018 GDP increases by:

All the following will be included in a country's GDP EXCEPT:

If the production of a country remains unchanged between two years and the price level increases, then the _____ GDP must have:

Which of the following statements is NOT true?

If a country's real GDP is constant over time, then:

Suppose that the cost of a representative basket used to calculate the Consumer Price Index (CPI) is $500 in the base year 2000 and the CPI in the year 2017 is 110. The cost of the representative basket in 2017 is _____, and the rate of inflation between 2000 and 2017 is _____ percent.

If the real GDP of a country increases and the nominal GDP of a country falls, then it can be concluded that the output of the country must have_____ and the price level must have:

Suppose that the Consumer Price Index (CPI) in 2017 is 100 and in 2018 is 108. The inflation rate between 2017 and 2018 is _____ percent.

Which one of the following will benefit from an increase in the rate of inflation?

The alteration between expansions and contractions in the economy's level of output is known as:

Real GDP is the value of GDP obtained after eliminating the:

A worker has a nominal income of $10,000 in the year 2000, and the CPI for 2000 was 100. If the worker's nominal income remained unchanged in 2001 but the real income increased to $10,050, then we can conclude that the economy experienced _____ percent between 2000 and 2001.

The rate of unemployment when there is full employment in the economy is known as _____ unemployment.

Nancy lives in a beach town where there is a lot of demand for workers between April and September. During the other months, Nancy remains unemployed. Therefore, during those months Nancy will be categorized as _____ unemployed.

Suppose that the cost of a representative basket used to calculate the Consumer Price Index (CPI) is $500 in the base year 2000. Further, suppose that the cost of the same basket is $525 in 2017. The CPI for the base year is _____, and the CPI for 2017 is:

Which of the following statements is true?

_____ are two types of transaction costs that are associated with inflation.