Reference no: EM13175725
Question 1 Briefly define the following terms:
a. Business cycle
b. Real GDP
2. Why are intermediate goods, such as Intel CPUs used to produce Dell computers sold to consumers, not directly included in GDP?
3. Measured as the long-term growth of potential GDP, how has economic growth in the United States changed over the decades since 1962? There was a slowdown in growth-when was it and what is it called?
4. What is the difference between real GDP and nominal GDP? Which better measures changes in production rather than changes in prices?
5. The United States is in what phase of the business cycle?
Answer the following multiple choice questions.
6. Which of the following relationships is correct?
i. GDP = aggregate expenditure
ii. GDP =aggregate income
iii. GDP = market value of the final goods and services produced within a country in a given time period.
a. iii only
b. ii and iii only
c. i and iii only
d. i, ii, and iii
7. The largest component of GDP in the expenditures approach is
a. personal consumption expenditures.
b. gross private domestic investment.
c. government spending on goods and services.
d. net exports.
8. Which of the following correctly states the order of the business cycle?
a. recession, peak, expansion, trough
b. recession, trough, expansion, peak
c. recession, expansion, peak, trough
d. expansion, peak, trough, recession
9. Which of the following is currently included in GDP?
i. the underground economy
ii. the value of leisure time
iii. the value of household production
a. iii only
b. i and iii only
c. i, ii, and iii
d. None of the above
|
What is distinction between net investment, gross investment
: What is the distinction between net investment and gross investment? Which is the total amount spent on investment in a given year? Which is the change in the capital stock?
|
|
How much did the increase in capital per hour of work
: Suppose that real GDP per hour of work grew by 6 percent last year and the capital per hour of work grew 9 percent. Using the one third rule, by how much did the increase in capital per hour of work increase real GDP per hour of work?
|
|
How does an increase in population affect potential real gdp
: How does an increase in population affect potential real GDP? In your answer, be sure to mention the role played by the labor market.
|
|
Calculate the labor force
: If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force is
|
|
What is the difference between real gdp and nominal gdp
: Measured as the long-term growth of potential GDP, how has economic growth in the United States changed over the decades since 1962? There was a slowdown in growth-when was it and what is it called?What is the difference between real GDP and nominal ..
|
|
How does the quantity supplied of toasters change
: The market for toasters is a competitive market. Suppose that the quantity of toasters supplied per year depends as follows on the price of a toaster:On a piece of graph paper, plot the supply curve for toasters. How does the quantity supplied of toa..
|
|
What factors might cause this nation to produce
: Suppose this society produces twenty million tons of food and six million tractors per year. Is it operating on its production possibilities frontier? d. What factors might cause this nation to produce at a point within its production possibilities f..
|
|
Determine how the economy is performing
: In 1982, nominal GDP decreased by 2% while real GDP increased 4%. What explains the difference between nominal GDP and real GDP? Which is a better indicator of how the economy is performing?
|
|
Show a breakdown analysis
: A study has estimated the effect of changes in interest rates and consumer confidence on the demand for money to be: ln M = 14.666 + .021 ln C ? 0.036 ln r, where M denotes real money balances, C is an index of consumer confidence, and r is the in..
|