Question 1

What are the categories of total expenditure?

Accepted Answer

There are four categories: Consumption e...

Question 2

Compared to the other sources of spending,net exports is

Accepted Answer

A)   large and negative.
B)   small and negative.
C)   large and positive.
D)   small and positive.E) B) and C)
F) A) and B)

Question 3

Business cycles

Accepted Answer

A)   are more volatile during a Republican administration.
B)   are unpredictable due to political upheavals and global markets.
C)   follow a pattern of trough, expansion, peak and recession.
D)   are all identical in duration over the last century.E) A) and B)
F) B) and D) C

Question 4

A business cycle is the pattern of short-run upward and downward movements in production and jobs.

Accepted Answer

A) True 
 B)False

Question 5

The term "business cycle" most closely refers to the

Accepted Answer

A)   fluctuating profits of firms.
B)   fiscal year.
C)   accounting period used by firms.
D)   alternating periods of expansions and recessions.E) None of the above
F) A) and C)

Question 6

At 2012 prices,the value of production in 2013 was 6 percentage points higher than in 2012.At 2013 prices,the value of production in 2013 was 4 percentage points higher than in 2012.Using the chain-weighted output index,real GDP is ________ in 2013 than in 2012.

Accepted Answer

A)   10 percent greater
B)   5 percent greater
C)   7.5 percent greater
D)   4 percent smallerE) A) and B)
F) A) and C)

Question 7

GDP equals

Accepted Answer

A)   C + S + G + (X - M) 
B)   C + I + G + (X + M) .
C)   C + I + G + (X - M) ,.
D)   C + S + G + (X - M) ..E) A) and D)
F) B) and C)

Question 8

List and compare the four components of the expenditure approach to calculating GDP.

Accepted Answer

The 4 parts can be summarized according ...

Question 9

By itself,an increase in exports

Accepted Answer

A)   increases GDP.
B)   decreases GDP.
C)   means imports decrease by the same amount.
D)   can either increase or decrease GDP, depending on whether the exports are durable or nondurable.E) B) and C)
F) A) and C)

Question 10

Is it possible for nominal GDP to increase while real GDP does not change?

Accepted Answer

Yes,it is possible for nominal GDP to in...

Question 11

According to the BEA,in the second quarter of 2012 business spending on equipment and software rose by 4.7 percent.Using the expenditure approach,this change increases

Accepted Answer

A)   gross private domestic investment.
B)   government expenditure on goods and services.
C)   net exports of goods and services.
D)   personal consumption expenditures.E) None of the above
F) B) and D)

Question 12

4 News Based Questions
"As the credit crisis unfolded over the past year, one of the few certainties in the global economy seemed to be China's ability to plough on regardless of double-digit growth rates...The ...crisis has also focused ...on the need to update a growth model that...is still dependent on assembling goods for export without adding much value and on heavy industries that create pollution. Chinese companies have continued to find new foreign markets for their products...several other factors point to a slowing property market...production of steel, cement and air conditioners was down... Retail sales have risen by 23 per cent in each of the last two months".
Beijing's Burden, www.FT.com, by Geoff Dyer, Sept. 23, 2008
-According to the article,________ are expected to contribute ________ to China's real GDP in 2008.

Accepted Answer

A)   exports and consumption; positively
B)   consumption and government spending; negatively
C)   exports and investment; negatively
D)   rental income and investment; negativelyE) B) and C)
F) A) and B)

Question 13

Net exports of goods and services equal the

Accepted Answer

A)   exports of goods and services divided by the imports of goods and services.
B)   exports of goods and services plus the imports of goods and services.
C)   exports of goods and services minus the imports of goods and services.
D)   imports of goods and services minus the exports of goods and services.E) All of the above
F) A) and B)

Question 14

Using a graph,draw and label the phases and turning points of the business cycle.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> The figur...

Question 15

The series of ups and downs the economy tends to move in is called

Accepted Answer

A)   the business cycle.
B)   a recession.
C)   a depression.
D)   economic growth.E) C) and D)
F) All of the above

Question 16

In years with inflation,nominal GDP increases ________ real GDP.

Accepted Answer

A)   faster than
B)   slower than
C)   at the same rate as
D)   sometimes faster, sometimes slower, and sometimes at the same rate asE) C) and D)
F) A) and B)

Question 17

Which of the following is not a phase or turning point of the business cycle?

Accepted Answer

A)   recession
B)   expansion
C)   shutdown
D)   troughE) C) and D)
F) A) and B) C

Question 18

To see how variables evolve over time we use

Accepted Answer

A)   a scatter graph.
B)   an evolution plot.
C)   a cross-section plot.
D)   a time-series graph.E) None of the above
F) B) and D)

Question 19

Net investment equals

Accepted Answer

A)   capital stock minus depreciation.
B)   gross investment minus depreciation.
C)   the total quantity of plant, equipment and buildings.
D)   gross investment/depreciation.E) None of the above
F) A) and B)

Question 20

Which of the following statements about the comparison between GDP in China and in the United States is correct?

Accepted Answer

A)   Using the exchange rate to value China's GDP in dollars shows that China's GDP per person exceeds the GDP per person in the United States.
B)   Using purchasing power parity prices to value China's GDP in dollars shows that China's GDP per person exceeds the GDP per person in the United States.
C)   China's GDP per person is higher using purchasing power parity prices rather than the exchange rate when valuing China's GDP in dollars.
D)   None of the above answers are correct because they are all false statements.E) A) and C)
F) A) and D) C

Exam 4: Measuring GDP and Economic Growth

What are the categories of total expenditure?

Correct Answer
verified
There are four categories: Consumption e...
View Answer

Compared to the other sources of spending,net exports is

Correct Answer
verified

Business cycles

Correct Answer
verified
C

A business cycle is the pattern of short-run upward and downward movements in production and jobs.

Correct Answer
verified

The term "business cycle" most closely refers to the

Correct Answer
verified

At 2012 prices,the value of production in 2013 was 6 percentage points higher than in 2012.At 2013 prices,the value of production in 2013 was 4 percentage points higher than in 2012.Using the chain-weighted output index,real GDP is ________ in 2013 than in 2012.

Correct Answer
verified

GDP equals

Correct Answer
verified

List and compare the four components of the expenditure approach to calculating GDP.

Correct Answer
verified
The 4 parts can be summarized according ...
View Answer

By itself,an increase in exports

Correct Answer
verified

Is it possible for nominal GDP to increase while real GDP does not change?

Correct Answer
verified
Yes,it is possible for nominal GDP to in...
View Answer

According to the BEA,in the second quarter of 2012 business spending on equipment and software rose by 4.7 percent.Using the expenditure approach,this change increases

Correct Answer
verified

Correct Answer
verified

Net exports of goods and services equal the

Correct Answer
verified

Using a graph,draw and label the phases and turning points of the business cycle.

Correct Answer
verified
The figur...
View Answer

The series of ups and downs the economy tends to move in is called

Correct Answer
verified

In years with inflation,nominal GDP increases ________ real GDP.

Correct Answer
verified

Which of the following is not a phase or turning point of the business cycle?

Correct Answer
verified
C

To see how variables evolve over time we use

Correct Answer
verified

Net investment equals

Correct Answer
verified

Which of the following statements about the comparison between GDP in China and in the United States is correct?

Correct Answer
verified
C

Exam 4: Measuring GDP and Economic Growth

What are the categories of total expenditure?

Correct AnswerverifiedThere are four categories: Consumption e...View AnswerShow Answer

Compared to the other sources of spending,net exports is

Correct AnswerverifiedShow Answer

Business cycles

Correct AnswerverifiedC

A business cycle is the pattern of short-run upward and downward movements in production and jobs.

Correct AnswerverifiedShow Answer

The term "business cycle" most closely refers to the

Correct AnswerverifiedShow Answer

At 2012 prices,the value of production in 2013 was 6 percentage points higher than in 2012.At 2013 prices,the value of production in 2013 was 4 percentage points higher than in 2012.Using the chain-weighted output index,real GDP is ________ in 2013 than in 2012.

Correct AnswerverifiedShow Answer

GDP equals

Correct AnswerverifiedShow Answer

List and compare the four components of the expenditure approach to calculating GDP.

Correct AnswerverifiedThe 4 parts can be summarized according ...View AnswerShow Answer

By itself,an increase in exports

Correct AnswerverifiedShow Answer

Is it possible for nominal GDP to increase while real GDP does not change?

Correct AnswerverifiedYes,it is possible for nominal GDP to in...View AnswerShow Answer

According to the BEA,in the second quarter of 2012 business spending on equipment and software rose by 4.7 percent.Using the expenditure approach,this change increases

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Net exports of goods and services equal the

Correct AnswerverifiedShow Answer

Using a graph,draw and label the phases and turning points of the business cycle.

Correct Answerverified The figur...View AnswerShow Answer

The series of ups and downs the economy tends to move in is called

Correct AnswerverifiedShow Answer

In years with inflation,nominal GDP increases ________ real GDP.

Correct AnswerverifiedShow Answer

Which of the following is not a phase or turning point of the business cycle?

Correct AnswerverifiedC

To see how variables evolve over time we use

Correct AnswerverifiedShow Answer

Net investment equals

Correct AnswerverifiedShow Answer

Which of the following statements about the comparison between GDP in China and in the United States is correct?

Correct AnswerverifiedC

Correct Answer
verified
There are four categories: Consumption e...
View Answer

Correct Answer
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Correct Answer
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C

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The 4 parts can be summarized according ...
View Answer

Correct Answer
verified

Correct Answer
verified
Yes,it is possible for nominal GDP to in...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The figur...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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C

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Correct Answer
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Correct Answer
verified
C