Macroeconomics Fall Quarter 2017 Part II

If real GDP double and the GDP deflator doubles, then nominal GDP...

Suppose GDP consists of wheat and rice. In 2004, 20 bushels of wheat are sold at $2 per bushel while 10 bushel of rice are sold at $1 per bushel. In 2005, 20 bushels of wheat are sold at $4 per bushel, and 10 bushels of rice are sold at $2 per bushel. Using 2005 as the base year, it follows that, for 2005...

Suppose GDP consists of wheat and rice. In 2004, 20 bushels of wheat are sold at $2 per bushel while 10 bushel of rice are sold at $1 per bushel. In 2005, 20 bushels of wheat are sold at $4 per bushel, and 10 bushels of rice are sold at $2 per bushel. Using 2004 as the base year, it follows that, for 2005...

Which of the following statements about GDP is correct? A) Nominal GDP values production at current prices, whereas real GDP values production at constant prices. B) Nominal GDP values production at constant prices, whereas real GDP values production at current prices. C) Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process. D) Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.

For a certain economy in 2005, GDP was $2,000; investment was $400; government purchases were $300; and net exports were $70. It follows that consumption was...

In 2015, the price of pork is $20 and the price of corn is $12 while in 2016 the price of pork is $25 and the price of corn is $18. Suppose the basket of goods in the CPI consisted of 3 units of pork and 4 units of corn. What is the inflation rate for 2016 if the base year is 2015?

What are the top three goods and services for the typical consumer?

Over a twenty-year period, the price of a movie rose from $3 to $8. Over the same period, the CPI doubled. Adjusting for inflation, what would be the price of a movie in today's terms? Using the information above, is a movie more expensive today or twenty-years ago?

The substitution bias in the consumer price index refers to the ...

Babe Ruth, the famous baseball player, earned $80,000 in 1931. Today, the best baseball players can earn more than 300 times as much as Babe Ruth earned in 1931. However, prices also have risen since 1931. We can conclude...

Which of the following is correct? A) Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries. B) Productivity is not closely linked to the government policies. C) The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress. D) Productivity may be measured by the growth rate of real GDP per person.

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills a par of Perry's...

You and your friend work together for 4 hours to produce a total of 12 futons. What is the productivity?

Which of the follow is human capital? A) A student loan B) Understanding how to use a company's accounting software C) A new table for new corporate employees D) All of the above are correct