Macroeconomics Exam 1 example #14402

7 December 2023

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6 test answers

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question

the value of housing services provided by the economy's owner-occupied houses is

answer

included in GDP, and the estimated rental values of the houses are used to place a value on these housing services.

question

If net exports is a negative number for a particular year, then

answer

the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year.

question

If total spending rises from one year to the next, then

answer

either the economy must be producing a larger output of goods and services, or goods and services must be selling at higher prices, or both.

question

GDP deflator formula

answer

nominal/real x 100

question

net exports

answer

=exports-imports

question

how to calculate CPI

answer

cost basket for present year/cost of basket for base year x 100