Exam 7: Ataking the Nations Economic Pulse

Your father tells you he earned $2.00 per hour when he was 16 in 1969;you remember making $10.00 per hour in 2003.Given that the CPI was 36.7 in 1969 and 184.0 in 2003,how does your father's 1969 wage (measured in 2003 dollars)compare with your wage in 2003?

Your brother graduated from college 10 years ago and started to work at a salary of $30,000.You expect to graduate this year and start to work for $47,250.If the consumer price index was 90 ten years ago and is 150 this year,who will have received the higher real starting salary?

Per capita GDP is

If a small municipal government buys $5,000 worth of business supplies,spends $55,000 to hire an administrator,and spends $26,000 for a new automobile used by the administrator,this municipal government's contribution to GDP is

The typical bundle of goods and services on which the GDP deflator is based

Which of the following would be counted in this year's GDP?

If nominal GDP increases by 4 percent,then

The consumer price index (CPI)is calculated

If you were required to write a paper for your history class (or a report for your job)in which you were using dollar valued data across different years,you would

The primary value of GDP lies in its ability to

The Liebowitz family purchased a used two-year-old sofa at Swanson's Used Furniture Store in March of 2011.How will this affect the 2011 GDP?

Using the resource cost-income approach,indirect business taxes have to be added to get gross domestic product because the

Which of the following does not contribute to GDP?

Consider the following information for the U.S.economy (figures in billions). Table 7-6 -Refer to Table 7-6.What was the value of national income?

Government purchases include spending on goods and services by

If this year the CPI is 110 and last year it was 100,then

GDP during a period can be calculated by summing either

Why is it important to use real rather than nominal GDP figures when making comparisons of output across time periods?

Indicate whether the following transactions would be included in GDP.If they are included,indicate which component (consumption,investment,government consumption and gross investment,or net exports)of GDP would be affected. a.A Czech student attending school in Florida takes a summer job as a lifeguard. b.A New York company buys welding equipment from a St.Louis firm to help it build jet fighters. c.The IRS purchases a new computer from the GATS computer company (an American-owned business producing and operating in Germany)that will allow it to better detect income tax evasion.

The consumer price index is calculated using a fixed basket of goods.Will this always give an accurate representation of the changing cost of living to consumers? Why or why not?