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Exam 26: Measuring Domestic Output and National Income

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Question 81

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Assume an economy that is producing only one product.Output and price data for a three-year period are as follows.Answer the question on the basis of these data. $\begin{array}{c}\begin{array}{c}\\\underline{\text { Year }} \\1 \\2 \\3\end{array}\begin{array}{c}\text { Units of}\\\underline{\text {Output}}\\20\\25\\30\end{array}\begin{array}{c}\text {Price Per}\\\underline{\text {Unit}}\\ \$ 4 \\4\\6 \end{array}\end{array}$ Refer to the data.The nominal GDP for year 3 is:

A) 125 percent higher than the nominal GDP for year 1.
B) 50 percent higher than the nominal GDP for year 1.
C) $120.
D) $30.

E) A) and B)
F) A) and C)

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Question 82

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Answer the question on the basis of the following data.All figures are in billions of dollars. $\begin{array}{llcc} \text {Personal Taxes } &\$40 \\ \text { Social Security Contributions} &15\\ \text {Taxes on Production and Imports } &20\\ \text {Corporate Income Taxes } &40\\ \text { Transfer Payments } &22\\ \text { U.S. Exports } &24\\ \text {Undistributed Corporate Profits } &35 \\ \text {Government Purchases } &90\\ \text { Gross Private Domestic Investment } &75\\ \text { U.S. Imports } &22\\ \text {Personal Consumption Expenditures } &250\\ \text {Consumption of Fixed Capital } &25\\ \text { Net Foreign Factor Income } &10\\ \text {Statistical Discrepancy } &0\\\end{array}$ Refer to the data.PI is:

A) $314.
B) $346.
C) $408.
D) $437.

E) A) and C)
F) A) and D)

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Question 83

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If real GDP rises and the GDP price index has increased:

Economy A: gross investment equals depreciation Economy B: depreciation exceeds gross investment Economy C: gross investment exceeds depreciation Refer to the information.Positive net investment is occurring in:

Which of the following is the smallest dollar amount in the United States?

Use the following table for a hypothetical single-product economy. $\begin{array}{c}\begin{array}{c}\\\underline{\text { Year }} \\ 1 \\2 \\3 \\4\end{array}\begin{array}{c}\text {Units of}\\\underline{\text { Output}}\\10\\12\\15\\20\end{array}\begin{array}{c}\text { Price of Bagel}\\\underline{\text { Per Unit}}\\\$ 10\\20\\ 30\\ 40\end{array}\begin{array}{c}\text {Price Index}\\\underline{\text {( Year 1=100) }}\\100\\200\\300\\400\end{array}\end{array}$ Refer to the data.Real GDP in year 3 is:

Assume an economy that makes only one product and that year 3 is the base year.Output and price data for a five-year period are as follows.Answer the question on the basis of these data. $\begin{array}{c}\begin{array}{c}\\\underline{\text { Year }} \\1 \\2 \\3 \\4 \\5\end{array}\begin{array}{c}\text { Units of}\\\underline{\text { Output}}\\3 \\4 \\6 \\7 \\8\end{array}\begin{array}{c}\text { Price Per } \\\underline{\text { Unit } }\\ \$ 3 \\4 \\5 \\7 \\8\end{array}\end{array}$ Refer to the data.If year 3 is chosen as the base year,the price index for year 1 is:

The agency responsible for compiling the National Income Product Accounts for the U.S.economy is the:

Answer the question on the basis of the following information: $\begin{array}{c}\begin{array}{c}\\\underline{\text { Year }} \\1 \\2 \\3 \\4 \\5\end{array}\begin{array}{c}\text { Nominal}\\\underline{\text { GDP } }\\ \$ 550 \\560 \\576 \\586 \\604\end{array}\begin{array}{c}\text { Price}\\\underline{\text { Index}}\\140 \\135 \\120 \\117 \\108\end{array}\end{array}$ In the economy above,real GDP for year 3 is:

Assume an economy that is producing only one product.Output and price data for a three-year period are as follows.Answer the question on the basis of these data. $\begin{array}{c}\begin{array}{c}\\\underline{\text { Year }} \\1 \\2 \\3\end{array}\begin{array}{c}\text { Units of}\\\underline{\text {Output}}\\20\\25\\30\end{array}\begin{array}{c}\text {Price Per}\\\underline{\text {Unit}}\\ \$ 4 \\4\\6 \end{array}\end{array}$ Refer to the data.If year 2 is chosen as the base year,the price index for year 1 is:

Answer the question on the basis of the following information: Only three goods are produced in an economy in the following amounts: A = 10,B = 30,C = 5.The current year per unit prices of these three goods are A = $2,B = $3,and C = $1. (Advanced analysis) Refer to the information.If the per unit prices of the three goods were each $1 in a base year used to construct a GDP price index,then real GDP in the current year is:

Answer the question on the basis of the following data.All figures are in billions of dollars. $\begin{array}{llcc} \text {Personal Taxes } &\$40 \\ \text { Social Security Contributions} &15\\ \text {Taxes on Production and Imports } &20\\ \text {Corporate Income Taxes } &40\\ \text { Transfer Payments } &22\\ \text { U.S. Exports } &24\\ \text {Undistributed Corporate Profits } &35 \\ \text {Government Purchases } &90\\ \text { Gross Private Domestic Investment } &75\\ \text { U.S. Imports } &22\\ \text {Personal Consumption Expenditures } &250\\ \text {Consumption of Fixed Capital } &25\\ \text { Net Foreign Factor Income } &10\\ \text {Statistical Discrepancy } &0\\\end{array}$ Refer to the data.DI is:

GDP is the:

Assume an economy that makes only one product and that year 3 is the base year.Output and price data for a five-year period are as follows.Answer the question on the basis of these data. $\begin{array}{c}\begin{array}{c}\\\underline{\text { Year }} \\1 \\2 \\3 \\4 \\5\end{array}\begin{array}{c}\text { Units of}\\\underline{\text { Output}}\\3 \\4 \\6 \\7 \\8\end{array}\begin{array}{c}\text { Price Per } \\\underline{\text { Unit } }\\ \$ 3 \\4 \\5 \\7 \\8\end{array}\end{array}$ Refer to the data.The nominal GDP for year 4 is:

Answer the question on the basis of the following data.All figures are in billions of dollars. $\begin{array}{llcc} \text {Personal Taxes } &\$40 \\ \text { Social Security Contributions} &15\\ \text {Taxes on Production and Imports } &20\\ \text {Corporate Income Taxes } &40\\ \text { Transfer Payments } &22\\ \text { U.S. Exports } &24\\ \text {Undistributed Corporate Profits } &35 \\ \text {Government Purchases } &90\\ \text { Gross Private Domestic Investment } &75\\ \text { U.S. Imports } &22\\ \text {Personal Consumption Expenditures } &250\\ \text {Consumption of Fixed Capital } &25\\ \text { Net Foreign Factor Income } &10\\ \text {Statistical Discrepancy } &0\\\end{array}$ Refer to the data.NDP is:

If there are no statistical discrepancies,NDP (net domestic product) is:

Suppose nominal GDP was $360 billion in 1990 and $450 billion in 2000.The appropriate price index (1985 = 100) was 120 in 1990 and 125 in 2000.Between 1990 and 2000 real GDP:

If real disposable income fell during a particular year,we can conclude that:

Gross private domestic investment exceeds depreciation in an economy that experiences expanding production capacity.

The amount of after-tax income received by households is measured by: