Macroeconomics: Measuring Domestic Output And National Income

9 Questions | Total Attempts: 592

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Macroeconomics Quizzes & Trivia

ABC3/ALC2


Questions and Answers
  • 1. 
    • A. 

      Plus gross private domestic investment, minus government spending, and plus net exports

    • B. 

      Plus gross private domestic investment, plus government spending, and minus net exports

    • C. 

      Minus gross private domestic investment, plus government spending, and plus net exports

    • D. 

      Plus gross private domestic investment, plus government spending, and plus net exports

  • 2. 
    Which is the basic equation underlying GDP?
    • A. 

      MV+Q=GDP

    • B. 

      C+I+MV+G=GDP

    • C. 

      GDP=MV+PQ

    • D. 

      C+I+X+G=GDP

  • 3. 
    GDP in an economy is $11,050 billion. Consumer expenditures are $7,735 billion, government purchases are $1,989 billion, and gross investment is $1,410 billion. Net exports are:
    • A. 

      +$53 billion

    • B. 

      -$47 billion

    • C. 

      -$84 billion

    • D. 

      -$161 billion

  • 4. 
    • A. 

      The purchase of newly-issued shares of stock in Microsoft

    • B. 

      The construction of a new computer chip factory by Intel

    • C. 

      The purchase of shares of stock by Fidelity, a mutual fund company

    • D. 

      The sale of government bonds by the nation's central bank

  • 5. 
    • A. 

      Construction of a new factory

    • B. 

      Purchase of shares of company stock

    • C. 

      The building of an apartment complex

    • D. 

      Additions to inventories at steel plants

  • 6. 
    Investment, as defined in national income accounts, would include:
    • A. 

      Additions to business inventories

    • B. 

      Personal consumption expenditures on durable goods

    • C. 

      Government construction of new highways and dams

    • D. 

      Purchase of shares of stock in corporate businesses

  • 7. 
    In an economy, the value of invetories rose from $100 billion in 2006 to $150 billion in 2007. In calculating total investment for 2007, national income accounts would:
    • A. 

      Decrease it by $50 billion

    • B. 

      Increase it by $50 billion

    • C. 

      Decrease it by $100 billion

    • D. 

      Increase it by $150 billion

  • 8. 
    The number of years required for real GDP to double can be found by:
    • A. 

      Dividing the annual growth rate by .07

    • B. 

      Multiplying the annual growth rate by 70

    • C. 

      Dividing 70 by the annual growth rate

    • D. 

      Adding 14 to annual growth rate

  • 9. 
    At an annual growth rate of 4 percent, real GDP will double in about:
    • A. 

      17.5 years

    • B. 

      20 years

    • C. 

      13.5 years

    • D. 

      15 years