question
Spending on housing is the largest portion of the consumer price index.
answer
true
question
(Table: Real and Nominal Output) Look at the table Real and Nominal Output. The change in nominal output between years 3 and 4 is an increase of:
answer
180%
question
The consumer price index is calculated by the Congressional Budget Office.
answer
false
question
(Table: GDP) GDP in the table is:
answer
$94 billion
question
Which one of the following is an example of consumption expenditure?
answer
Stephanie bought a laptop for her brother.
question
The two approaches used by government in estimating GDP are:
answer
expenditure and income.
question
(Figure: Circular-Flow Model) Look at the figure Circular-Flow Model. If the circular-flow model is in equilibrium (the sum of money flowing into each box is equal to the sum of the money flowing out of it) and there is a decrease in government spending, which of the following is likely to happen?
answer
an increase in the inflation rate
question
If the price index in year 1 is 110 and the price index in year 2 is 115, then the inflation rate is exactly 5% from year 1 to year 2.
answer
false
question
If your professor wins the lottery:
answer
GDP is not affected
question
If the United States exports $500 of goods and services and imports $700 of goods and services, net exports are $1,200.
answer
False
question
If the cost of the market basket in the base year is $2,000 and in 2014 it is $2,100, the price index for 2014 is:
answer
105
question
If the dollar amount of GDP decreases, then aggregate output is definitely decreasing.
answer
false
question
Investment spending refers to the:
answer
addition to the economy's supply of productive physical capital.
question
If during 2011, the Republic of Sildavia recorded a GDP of $65 billion, interest payments of $15 billion, imports of $13 billion, profits of $7 billion, exports of $15 billion, and rent of $7 billion, wages during 2011 in Sildavia were:
answer
$36 billion
question
The consumer price index measures the cost of the consumption of a family of four living below the poverty line.
answer
false
question
The construction of new housing is considered part of:
answer
investment spending.
question
Which of the following items would be included in the GDP accounts?
answer
$50 consultation on the phone with a psychic adviser
question
(Table: Pizza Economy III) Look at the table Pizza Economy III. Considering 2010 as the base year, given that total population was 1,140 in 2010 and 1,380 in 2011, real GDP per capita between 2010 and 2011 grew at a rate of:
answer
-50%.
question
In 2013, _____ spending was the largest component of U.S. GDP, at approximately 70% of aggregate spending.
answer
consumer
question
If the price index in year 1 is 110 and the price index in year 2 is 115, then the inflation rate is exactly 5% from year 1 to year 2.
answer
false
question
(Table: Real and Nominal Output) Look at the table Real and Nominal Output. The price index in year 1, using year 3 as the base period, is:
answer
50
question
Households supply resources in the factor markets.
answer
true
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