# Macroeconomics Private and Public Choice

## Quiz 7 :Taking the Nations Economic Pulse

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Which of the following would increase U.S. GDP?
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B

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If on-the-job working conditions have improved over time,
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A

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Explain the two approaches to calculating GDP.
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One approach involves adding up the expenditures on goods and services produced during the year. This figure would be the sum of personal consumption expenditures, government consumption and gross expenditures, gross private domestic investment, and net exports to foreigners. The other approach is calculated by adding up the income payments to resource suppliers and the other costs of producing those goods and services. Specifically, this method would sum employee compensation, proprietors' income, interest, rents, corporate profits, indirect business taxes, cost of depreciation, and the net income of foreigners.

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Which of the following accurately indicates how the recent outbreaks of terrorism have influenced the GDP of western nations?
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Answer the following questions: a.What does GDP measure, and why is it a useful tool for economists, business decision makers, and government policy makers? b.Explain at least two important things GDP does not measure.
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How much would be added to this year's GDP if you sold your four-year-old automobile for $4,000 and purchased a two-year-old model from an acquaintance for$10,000.
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Use the table below to choose the correct answer. Gross domestic product equals
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What is the difference between real and nominal GDP? If the president of the United States (or your instructor) asked you to evaluate the economy over the past five years, which one would you use and why?
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National income is
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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?
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Economists generally use GDP to measure a nation's total output because it is
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Which of the following would be counted in the calculation of GDP?
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The dollar value of GDP increased approximately 4 percent during the year, but real GDP fell 2 percent. Which of the following best explains this data?
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Answer the following questions: a.In 2004, four major hurricanes hit Florida.Explain how this destruction of property, and the rebuilding that went on afterward, affected GDP. b.Explain how GDP has trouble accounting for other parts of the economy as well.
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Your father tells you he earned $3.00 per hour when he was 16 in 1977; you remember making$6.00 per hour when you were 16 in 1999. Given that the CPI was 36.7 in 1977 and 166.1 in 1999, which of the following is the 1999 real equivalent of your father's hourly earnings when he was 16?
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Figure 9-3 -Accurate measurement of GDP is important to business decision-makers because this information will help them better determine the
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Per capita GDP is
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If the GDP deflator in 2009 was 120 compared to a value of 100 during the 2004 base year, this would indicate that
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Assume that between 1999 and 2009 nominal GDP increased from $7 trillion to$12 trillion and that the GDP deflator rose from 100 to 150. Which of the following expresses GDP for 2009 in terms of 1999 prices?