question
An increase in real GDP could happen at the same time with all of the following except?
answer
A decrease in the amount of final goods and services produced
question
Which of the following statements is correct?
answer
GDP can be calculated by adding up the values of all four of its components.
question
If the GDP deflator for the current year is 224, which of the following is impossible?
answer
The current price level is lower than that of the base year.
question
Which of the following statements is not true about the labor force?
answer
To be in the labor force, a worker has to be employed full-time.
question
Which of the following is least likely to be frictional unemployment?
answer
A worker with 10 years experience assembling tape recorders is unemployed because nobody buys tape recorders anymore.
question
Who decides whether and when the US economy is in recession?
answer
The Business Cycle Dating Committee of the NBER
question
Suppose a country produces two final goods only, good A and good B. In 2017, the price for good A was $4 and the price for good B was $8. In 2018, the prices for good A and good B were $5 and $10 respectively, and the outputs of good A and B were 102 units and 238 units respectively. In 2019, the prices for good A and good B are $4 and $10 respectively, the outputs are 122 units and 222 units respectively. The base year is 2017. What is the growth rate of real GDP from 2018 to 2019?
answer
-2.08 ± 0
question
This morning in the supermarket, you found an old shopping list in your wallet and the receipt from the last year for all the things on the list. You wanted to do a quick economics experiment so you bought everything on the list again for $112. The receipt says that on the same day last year, you paid $109 for these things. Suppose you heard in the morning news that the CPI for this year is 133, what is your best guess of the CPI last year based on the result of your experiment?
answer
129.44 ± 0
question
Over time, consumers adjust their buying habit: They tend to buy more of the increasingly cheaper goods and less of the increasingly more expensive goods, as the prices of different goods change over time. This behavior creates a problem with the consumer price index. This problem is called ________.
answer
substitution bias
question
Suppose a country produces two final goods only, good A and good B. In 2017, the price for good A was $3 and the price for good B was $7. In 2018, the prices for good A and good B were $4 and $10 respectively, and the outputs of good A and B were 107 units and 100 units respectively. In 2019, the prices for good A and good B are $5 and $11 respectively, the outputs are 202 units and 203 units respectively. The base year is 2017. What is the GDP deflator inflation rate from 2018 to 2019?
answer
14.39 ± 0
question
________ happens when there is a decrease in the overall price level.
answer
deflation
question
Real GDP is the yearly production of final goods and services valued at ________ prices.
answer
Real GDP is the yearly production of final goods and services valued at ________ prices.
question
During spring cleaning, you found an old receipt that says your parents bought you a toy for $13 when you were 7. If the CPI today is 206 and the CPI when you were 7 was 88, how much money do you need in order to buy the same toy today? (Assume that the CPI is an accurate measure of the price of the toy.)
answer
30.43 ± 0
question
What is the difference between real and nominal GDP?
answer
Real GDP is not affected by price changes while nominal GDP is affected by price changes.
question
Which of the following is not a component of GDP?
answer
Imports
question
Which of the following is measured by GDP?
answer
The value of ingredients you used to cook dinner for yourself.
question
Which of the following is correct about the business cycle?
answer
It shows that economies go through periods of increasing and decreasing real GDP.
question
Which of the following statements is correct?
answer
Inflation is an increase in the average level of prices.
question
Which of the following statements involving labor force is correct?
answer
The percentage of the labor force unemployed is the unemployment rate.
question
It takes time for workers to find jobs that they desire. The unemployment resulted from workers taking time to find good jobs is called ________?
answer
Frictional unemployment
question
How is the implicit price deflator for GDP defined?
answer
The ratio of nominal GDP to real GDP.
question
How can we measure economic well-being?
answer
None of the above.
question
Which of the following is incorrect about private investment?
answer
Investment activities include putting money in the stock market.
question
Cyclical unemployment
answer
can be negative
question
Which of the following statements is correct?
answer
The natural rate of unemployment reflect, partly, structural unemployment.
question
A country reported nominal GDP of $225 billion in 2018 and $232 billion in 2019. It also reported a GDP deflator of 154 in 2018 and 162 in 2019. Between 2018 and 2019,
answer
real output fell and the price level rose.
question
Suppose last year, there are 100 million people employed in the economy. The total population last year was 180 and the unemployment rate was 4.5%. How many millions of people are not in the labor force?
answer
75.29 ± 0
question
Which of the following statements regarding GDP is correct?
answer
GDP includes factory production, but not any harm that may be inflicted on the environment.
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