Exam 7: Ataking the Nations Economic Pulse

Use the table below to answer the following question. Table 7-13 -Refer to Table 7-13.Between 2001 and 2002,the real output of this economy increased by approximately

The nominal salary paid to the president of the United States and the Consumer Price Index (CPI)are given for various years below. Table 7-9 -Refer to Table 7-9.During which of the above years was the purchasing power of the president's salary highest?

U.S.imports are

Which of the following would not be counted as part of this year's GDP?

A price index like the CPI,which uses a fixed basket of goods from one year to the next,will tend to overstate inflation because

Which of the following activities is not counted in our calculations of GDP?

If nominal GDP increases 4 percent during a year,and real GDP increases 7 percent during the same year,which of the following must by true?

Double counting in the resource cost-income approach to GDP statistics is avoided by

An automobile manufacturing plant opens in Alabama,and its owner,all of the workers,and all raw materials are from Japan.How would the purchase of an automobile from this plant change U.S.GDP and GNP?

Over time,GDP may increase as the result of either (i)expansion in the quantities of goods produced or (ii)higher prices.Which of the following is true?

Suppose that the consumer price index at year-end 2010 was 180 and by year-end 2011 had risen to 189.What was the inflation rate during 2011?

Answer the following questions: a.What is the difference between gross domestic product and gross national product? b.Give an example of a transaction that would be counted in GDP but not in GNP. c.Give an example of a transaction that would be counted in GNP but not GDP.

Suppose the dollar value of GDP increased approximately 2 percent between October 2007 and August 2008,but real GDP fell 1 percent during the period.Which of the following best explains these data?

Accurate measurement of GDP is important to business decision-makers because this information will help them better determine the

Which of the following transactions would be included in this year's GDP for the United States?

If a local shop buys a used motorcycle for $1,000,refurbishes it,and resells it for $2,500,the

Real GDP equals nominal GDP

Answer the following questions: a.In 2004,four major hurricanes hit Florida.Explain how this destruction of property,and the rebuilding that went on afterward,affected GDP. b.Explain how GDP has trouble accounting for other parts of the economy as well.

The amount of U.S.exports purchased by the rest of the world is primarily determined by

If you wanted to take 2000 nominal GDP and convert it to 1995 prices,you would take 2000 nominal GDP and