Question

1. Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1...

1. Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $1.50 in 2009. If 4 apples were produced in 2002 and 5 in 2009, whereas 3 oranges were produced in 2002 and 4 in 2009, then real GDP (in 2002 prices) in 2009 was:

a. $5 b. $6.50 c. $9.50 d. $11.

2. If nominal GDP grew by 5 percent and real GDP grew by 3 percent, then the GDP deflator grew by approximately ____percent.

a. 2 b. 3 c. 5 d. 8

3. If GDP (measured in billions of current dollars) is $5,465, consumption is $3,657, investment is $741, and net exports are –$1,910, then government purchases is

a. $2,977 b. $1,910 c. –$843 d. $1,067

4. 10. GNP equals GDP___ income earned domestically by foreigners ____ income that nationals earn abroad.

a. plus; plus b. minus; minus c. minus; plus d. plus; minus

5. Prices of items included in the CPI are:

a. averaged with the price of every item weighted equally.

b. weighted according to amount of the item produced in GDP.

c. weighted according to quantity of the item purchased by the typical household.

d. chained to the base year by the year-to-year growth rate of the item

6. An increase in the price of goods bought by firms and the government will show up in:

a. the CPI but not in the GDP deflator.

b. the GDP deflator but not in the CPI.

c. both the CPI and the GDP deflator.

d. neither the CPI nor the GDP deflator.

Homework Answers

Answer #1


Ans 1)

Real GDP in 2002 Prices= Quantity of oranges in 2009* price of oranges in 2002+Quantity of apples in 2009* price of apples in 2002=4*1+5*0.5=$6.5

Hence option B is correct

Ans 2)

GDP deflator=Nominal GDP/Real GDP

GDP deflator (New)=Nominal GDP(1.05)/Real GDP(1.03)=GDP deflator (old)*1.019

Hence GDP deflator grew by 1.9% i.e 2%

option A is correct

Ans 3)

GDP=Consumption +Investment +Government Purchases+Export-Import

5465=3657+741+G-1910

7375=4398+G

G=$2977

Hence option A is correct

Ans 4)

GNP= GDP+ income earned domestically by foreigners+income that nationals earn abroad

hence option A is correct

Ans 5)

Option B is correct answer

Ans 6)

Option B is correct

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Find nominal GDP for the US in 2002 (dollar figures are in billions). Show your work!...
Find nominal GDP for the US in 2002 (dollar figures are in billions). Show your work! (all the numbers below are nominal)                                                                    (10 points) consumption          $7304                          gross private investment         $1593 wages                    $5977                          government purchases            $1973 indirect taxes         $ 695                           net interest                              $ 684 net exports            $-424                           depreciation                            $1393 rent                        $ 142                           profit                                       $1545       net foreign factor income earned in the US                                              $    10 Real GDP in 2002 was $9439.9 billion: What is the GDP deflator? (You have nominal...
1. Which of the following statements is (are) correct? (x) The term “inflation” is used to...
1. Which of the following statements is (are) correct? (x) The term “inflation” is used to describe a situation in which the overall level of prices in the economy is increasing and deflation occurs if the price level is decreasing. (y) The inflation rate is calculated as the percentage change in the price level from the previous period. (z) If inflation occurs, the typical household will spend more dollars to maintain the same standard of living. A. (x), (y) and...
1. CPI inflation overstates increases in the cost of living A. but its impact on government...
1. CPI inflation overstates increases in the cost of living A. but its impact on government budget is insignificant as both taxes and expenditures are tied to the index. B. because the index is subject to substitution bias but not quality bias. C. because the index is subject to quality bias but not substitution bias. D. by​ 1% per​ year, or perhaps even higher. 2. The CPI is calculated as A. The current cost of a fixed market basket of...
1) Which of the following people would be counted as unemployed? a) None of those b)...
1) Which of the following people would be counted as unemployed? a) None of those b) A 15 year old actively looking for a summer job c) A prison immate trying to line up a job after his release d) A 60 year old who would like a job but hasn't looked for one in the last year 2) Which of the following DOES NOT contribute to the lower rate of structural unemployment in the United States compared to Western...
1. Which of the following is true of unemployment? A) It is defined as the number...
1. Which of the following is true of unemployment? A) It is defined as the number of people actively looking for work who do not have jobs. B) The result is that the economy operates inside its production possibilities curve. C) There are psychological consequences associated with unemployment. D) All of the above. 2. Which of the following people would be considered unemployed? A) Homer, who lost his job at the power plant and is not looking for work B)...
1. Assume that you received a 3 percent increase in your normal wage. Over the year,...
1. Assume that you received a 3 percent increase in your normal wage. Over the year, inflation ran about 2.1 percent. Which of the following is true? a) Your real wage increased. b) Although your nominal wage rose, your real wage decreased c) Both your nominal and real wages decreased d) your nominal wage decreased 2. There are many measures of changes in price levels. which one of the following is the broadest measure of inflation? a) the GDP Chain...
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a...
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a balanced budget B. maximum​ employment, stable​ prices, and moderate​ long-term interest rates C. a stable U.S. dollar on foreign exchange markets and moderate​ long-term and​ short-term interest rates D. an economic environment in which investment in U.S. stock and money markets is encouraged The Federal Reserve Act says that the Fed must use​ ______ to achieve its objectives. A. bank reserves B. commercial banks...
1) What would you prefer, an annual cash flow of $600 for 4 years, or a...
1) What would you prefer, an annual cash flow of $600 for 4 years, or a lump sum payment of $2,500 in year 4? Your discount rate is 4.25%. Please discuss. 2) Our refinery has a remaining life of 3 years, and is fully utilised processing 1.5 million barrels of crude oil per annum at a processing cost of $10.00 real per barrel. By modifying the refinery at a cost of $6 million we can reduce the processing cost to...
Chapter 5 Import Protection Policy: Import Tariffs I. Chapter Overview 1. Types of import tariffs in...
Chapter 5 Import Protection Policy: Import Tariffs I. Chapter Overview 1. Types of import tariffs in terms of the means of collection in terms of the different tariff rates applied in terms of special purposes for collection 2. The effects of import tariffs concepts of consumers surplus and producers surplus the welfare effects of import tariffs 3. Measurement of import tariffs the "height" of import tariffs nominal versus effective tariff rates II. Chapter Summary 1. The means of collecting import...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT