AP MACRO Economic indicators

Which model/graph illustrates the total expenditures and total incomes of an economy?

• FOREX

• PPC

• Circular Flow

• Business Cycle

Which of the following calculation approaches for GDP find the sum of Consumption, Investment, Government Spending and Net Exports?

• Income Approach

• Expenditure Approach

• Value Added Approach

The unsold goods of a company's production are called the

• inventories

• backlogs

• monetary value

• non-market production

If the CPI in 2017 was 100 and the CPI in 2018 was 110, with no changes in nominal wages, which of the following is correct?

• real wages increased by 10%

• the inflation rate was 10%

• Nominal GDP decreased by 10%

If Jan works a 30-hour week for a minimum wage of $12 per hour and the CPI at the end of the year is 125, what is Jan's REAL wage at the end of the year?

• $8

• $9

• $10

• $12

Which of these terms is a SLOWING of the rate of inflation?

• deflation

• disinflation

• hyperinflation

• stagflation

If a saver takes out a 1 year CD at 3% interest and at the end of the year the government reports that prices have fallen by 5% for the year, what is the result of this transaction?

• saver loses; bank gains

• both the saver and the bank lose

• saver gains; bank loses

• both saver and the bank gain

which formula is the correct solution for Real GDP?

• Nominal GDP + GDP deflator

• Nominal GDP x GDP deflator

• GDP deflator / Nominal GDP

• Nominal GDP / GDP deflator

In 2011 the Nominal GDP was $15 billion and the price deflator was 200. What would the 2011 Real GDP be?

• $5 billion

• $7.5 billion

• $10 billion

• $20 billion

If the velocity of spending in the USA is 10 with a GDP of $50 billion (P=$2 and Q=25 billion); what would happen to the price level if the government increase the money supply to $10 billion?

• Price would increase to $4

• Price would decrease to $1

• Price would not be affected