AP Macroeconomics retest

Which of the following is true according to the circular flow model?

• Firms are suppliers in both the product and factor markets.

• Firms are demanders in the product markets and suppliers in the factor markets.

• Households are demanders in both the product and factor markets.

• Households are demanders in the product markets and suppliers in the factor markets.

• The government is a demander in the product market only.

Which of the following is most likely included in gross domestic product?

• Matt gives his secondhand bicycle to his brother.

• Sal paints his own bicycle.

• Ali buys a new bicycle.

• Mike buys a share of stock in a bicycle firm.

• Daniel bikes to school every day.

Alice, who has left her job in New York, is moving to Atlanta and looking for a job. In terms of employment status, Alice can most accurately be described as

• involuntarily unemployed

• cyclically unemployed

• seasonally unemployed

• frictionally unemployed

• not in the labor force

Which of the following groups of people would benefit from unanticipated inflation? I Savers II Borrowers III Lenders

• I only

• II only

• III only

• I and II only

• I and III only

In an economy, the price index in 2006 was 100 and the real gross domestic product (GDP) was $1,000. In 2010, the price index was 110 and the nominal GDPGDP was $2,200. Based on that information, which of the following can be inferred about the economy’s nominal GDP in 2006 and real GDP in 2010 ?

• Nominal GDP in 2006 = $2000; Real GDP in 2010 = $1000

• Nominal GDP in 2006=$1000;Real GDP in 2010 =$2,000

• Nominal GDP in 2006 = $1,100; Real GDP in 2010=$2420

• Nominal GDP in 2006 = $1000; Real GDP in 2010 = $2420

The table above gives population and labor-market data for an economy. The unemployment rate in this economy is

• 3.3%

• 5%

• 10%

• 33.3%

• 50%

The table below shows a country’s macroeconomic data in 2013.

• $220 billion

• $282 billion

• $304 billion

• $309 billion

• $347 billion

The table below shows the cost of the same representative basket of goods in the base year 2012 and in 2013, and the average weekly nominal wage rate in 2012 and 2013. If 2012 is the base year, which of the following is true?

• The inflation rate from 2012 to 2013 is 10%.

• The CPI in year 2013 is 110.

• The CPI in year 2013 is 120.

• Based on the CPI, the average real weekly wage rate increased by 10% from 2012 to 2013

• Based on the CPI, the average real weekly wage rate decreased by 20% from 2012 to 2013

Which of the following transactions would represent an addition to a nation's current gross domestic product?

• Ms. Smith purchases a share of stock in an automobile company.

• A retailer increases her stock of imported shoes.

• The government increases its domestic purchases of food for use by the military.

• A corporation sells shoes from last year's inventory.

• A mother sells her car to her daughter.

Which of the following household purchases will be counted as part of gross private investment in a country’s gross domestic product?

• Government bonds

• Shares of a company stock

• Corporate bonds

• A new car for personal use

• A newly constructed home