Unit 5 Macroeconomics Policies Review

What does a decline in gross domestic product (GDP) communicate to economists?

• The rate of inflation of all intermediate goods and services within a 12-month period decreased

• The prices of all final goods and services within a 12-month period decreased

• The total dollar value of all intermediate goods and services within a 12-month period decreased

• The total dollar value of all final goods and services within a 12-month period decreased

What is the formula for measuring GDP?

• intermediate goods and services multiplied by the price

• final goods and services divided by the price

• final goods and services multiplied by the price

• intermediate goods and services divided by the price

Which accurately describes price indexes economists use to monitor prices and inflation?

• Consumer price indexes economists use to measure prices and inflation include the gross national product and the gross domestic product

• Consumer price indexes economists use to measure prices and inflation include NASDAQ, S&P 500, and the Dow Jones
  

• Consumer price indexes economists use to measure prices and inflation include the Lorenz curve and the Phillips curve

• Consumer price indexes economists use to measure prices and inflation include the consumer price index, the producer price index, and the GDP deflator

How does a change in population impact gross domestic product (GDP)?

• If the population decreases and production increases, per capita GDP will decrease

• If the population increases and production increases, per capita GDP will decrease

• If the population decreases and production decreases, per capita GDP will increase

• If the population increases but production stays the same, per capita GDP will decrease

How does an increase of the retiree (elderly) population impact the economy?

• An increase in nonproducing citizens decreases per capita GDP

• An increase in nonproducing citizens increases gross national product

• An increase in nonproducing citizens increases per capita GDP

• An increase in nonproducing citizens decreases the consumer price index

How do gross national product (GNP) and gross domestic product (GDP) differ?

• While GNP includes production of all goods and services, GDP only includes production of final goods and services

• While GNP includes imports and exports of goods and services, GDP only includes the net exports of goods and services

• While GNP includes production by all people and businesses of a country, GDP only includes production within a country’s borders

• While GNP includes investments as well as production of goods and services, GDP only includes production of goods and services

Read the scenario.

A United States company produces widgets in Brazil.

Which is true about the calculation of widget production?

• The dollar value of the widgets would be included in a GDP calculation

• The dollar value of the widgets would be included in a GNP calculation

• The dollar value of the widgets would not be included in either a GNP or a GDP calculation

• The dollar value of the widgets would be included in both a GNP and a GDP calculation

Read the passage.

This is the most widely used measure of inflation and is sometimes viewed as an indicator of the effectiveness of government economic policy. It provides information about price changes in the nation's economy to government, business, labor, and private citizens, and it is used by them to help guide economic decisions.

What is being described?

• import price index

• export price index

• consumer price index

• producer price index

What is the primary tool used to measure inflation?

• gross domestic product

• durable goods shipments

• consumer price index

• gross national product

How does a rise in life expectancy impact population growth?

• It increases population growth

• It reverses population growth

• It does not impact population growth

• It slows population growth