Economics 202305 (Macro)

Real GDP equals

• (A)

  the sum of all the current-year quantities times their base-year prices

• (B)

  GDP divided by the CPI

• (C)

  GDP divided by the chain-weighted price index times 100

• (D)

  GDP times the chain-weighted price index divided by 100

• (E)

  Both (A) and (C)

"Economic growth" has occurred if the

• inflation rate between this year and last year is zero or less

• GDP this year exceeds the Real GDP this year

• unemployment rate this year is above the natural rate of unemployment

• Real GDP this year exceeds the Real GDP of last year

You have data for compensation of employees, proprietors' income, rental income, and net interest. Can you compute the national income?

• Yes.

• No, since data on indirect business taxes are missing.

• No, since data on corporate profits are missing.

• No, since data on the capital consumption allowance is missing.

If Real GDP was $6,742 billion in year 2 and it had been $6,509 billion in year 1, what was the approximate economic growth rate during this time period?

• 1.99%

• 4.6%

• 3.58%

• 1.34%

What is the proper sequence of the phases of a business cycle?

• peak, contraction, trough, expansion, recovery

• peak, contraction, recovery, trough, expansion

• peak, contraction, trough, recovery, expansion

• contraction, peak, trough, recovery, expansion

• recovery, trough, peak, expansion, contraction

In the business cycle, what is the difference between the recovery phase and the expansion phase?

• The expansion phase occurs in the rising portion of the business cycle, while the recovery phase occurs in the falling portion of the business cycle.

• The expansion phase occurs in the falling portion of the business cycle, while the recovery phase occurs in the rising portion of the business cycle.

• The expansion phase is the period when Real GDP increases beyond the recovery phase.

• The expansion phase must always preceed the recovery phase.

One measure of the inflation rate is the

• sum of the CPIs of adjacent years.

• percentage change in the CPI of adjacent years

• percentage change in the Real GDP of adjacent years.

• GDP minus the Real GDP in a year.

What are the types of inflation?

• Demand-pull and cost-pull

• Demand-pull and cost-push

• Demand-push and cost-pull

• Demand-push and cost-push

Discourage workers are not counted as unemployed because they are working.

• True

• False

What's the effect on equilibrium price level and real GDP of Malaysia when RM appreciates?

• Both equilibrium price level and equilibrium real GDP drop

• Both equilibrium price level and equilibrium real GDP increase

• Equilibrium price level increases and equilibrium real GDP drops

• Equilibrium price level drops and equilibrium real GDP increases