econ kill me

GDP is best defined as the _

— in a given time period.

market value of the final goods and services produced within a country

Which of the following is included in USA's GDP?

i.BMWs produced in a German-owned factory in South Carolina

One bag of coffee beans is sold for $5 to a cafe that uses it to brew coffee which it sells to customers for a total of $25. A second bag of coffee is sold directly to Joan for $7, who uses it to brew coffee for her family every morning. What is the contribution to GDP from the purchases of coffee beans and coffee?

32

Investment is defined as the purchase of

new capital goods and additions to inventories.

The business cycle has two phases,

recession and expansion.

As measured, GDP omits which of the following?

i. Illegal sales of goods and services ii. Changes in the amount of leisure time ill. Household production of goods and services

i ii and iii

In order to be classified as a recession, a contraction of general economic activity must last at least

six months.

Which of the following is likely to be an unreported economic activity?

tips paid to a taxi driver

Acounty with a real GDP per person similar to real GDP per person in the United States but with limited political freedom is generally considered to have

a lower standard of living than the United States.

The growth rate of real GDP equals

• [(real GDP in current year - real GDP in previous year) ÷ real GDP in previous year] × 100.

A nation's annual growth rate of real GDP per person is 3.5 percent. Its standard of living will

O double in 35 years.

• double in 50 years.

O double in 20 years.

o fall because of its population growth.

double in 20 years.

In order to obtain the data used to calculate the unemployment rate, the Bureau of Labor Statistics

uses a survey from 60,000 households.

Which of the following people would be classified as employed in the Current Population Survey?

Rich, who is working 20 hours a week but wants a full-time job

Based on data from Assignment 06, Unemployment Rate in the U.S. for Jan. 2025 was:

4.0 percent.

If real interest rate is higher than nominal interest rate

inflation rate is negative.

Based on data from Assignment 07, the 1-month Inflation Rate in Jan. 2025 was around:

• 0.5%

If the bank returns $1,100 on the $1,000 deposited for a year during which inflation was 4 percent, the real interest rate is

6 percent.

If the real interest rate (r) is 4 percent when the inflation rate (T) is 4 percent, the nominal interest rate

(i) is

8 percent.

If for a given year nominal GDP is $14,000 billion and real GDP is $7,000 billion, then the GDP price index is

200

If the nominal wage is $20.00 in 2011 and the CPI is 230 in 2011, then the real wage in 1982-1984 dollars

$08.70.

In Sep 2019, the price of gasoline in the Florida was $2.229 per gallon and the CPI was 256.0 with a base period of 1982 to 1984. What was the real price of gasoline per gallon in base period dollars?

$0.87 per gallon

If average annual tuition at public 4-year colleges was $1,500 in 1991, when the CPI was 125.0, and $9,000 in 2010 when the CPI was 250.0, then the real cost of annual tuition

rose by 200 percent during that period.

Because a third of government outlays are linked directly to the CPI, as time passes, the CPI bias means that the government's outlays are

larger than needed to keep pace with the cost of living.

When we compare the records of the CPI and the PCE price index over time, the

CPI tends to exceed the PCE price index.

According to the CPI basket, the largest item in the households' budgets is

housing.

The formula for the CPI is

• (Cost of CPI market basket at current period prices ÷ Cost of CPI market basket at next year's prices) × 100.

When the unemployment rate is_ the natural unemployment rate real gdp is _ is potential gdp

below; above

The reference base period for the CPI has an index number of

100

Full employment occurs when the

unemployment rate equals the natural unemployment rate.

Potential GDP is the level of output produced when the unemployment rate is

• equal to the natural unemployment rate.

In 1961, real GDP totaled $575 billion and in 2011 it totaled $1,255 billion. Between 1961 and 2011, the population increased from 20 million to 42 million. Between 1961 and 2011, the standard of living :

increased from $11,500 to $12,550.