Chapter 19- Macroeconomics Exam Questions with
Answers
1. Which of the following news stories (all published in early 2014)
would typi- cally be studied in macroeconomics? (Select all that apply.)
correct answer: "Expectations High for March Employment.", "What If Economic
Growth Is No Longer Possible?", "We Believe Inflation Should Rule Monetary Policy."
2. Produ
ction-based accounting is used to estimate GDP by . correct
answer: A and C only. (summing each firm's value added to the production process, computing for each
firm the ditterence between sales revenue and the purchase of intermediate products, then summing
this ditterence across all firms)
3. Which of the following will be considered a final good in the
calculation of U.S.
GDP? (Check all that apply.) correct answer: Defense equipment purchased by the federal
government, Golf outings at courses in North Carolina, (or Foot massages at spas in California)
4. Items are
classified as final goods only if they are the in a chain
of production. correct answer: end product
5. To generate estimates of gross domestic product (GDP), the
Bureau of Eco- nomic Analysis must aggregate a variety of data
sources, such as expenditure surveys. Which of the following are
likely to be problems while estimating GDP? (Select all that apply). correct
answer: Measuring physical depreciation of capital, Measuring black-market production
6. Which of the following pieces of information are needed for
national income accounting? (Select all that apply). correct answer: The government
would need information on both quantities produced and market prices, for every good produced
in an economy, The government would need information on all sales, including the size of all
inventories in every company.
7. Which of the following shows the expected relationship between
GDP and GDI? correct answer: GDP is equal to GDI.
8. Based on the information given in the
tables, in the first quarter of 2016, the estimate for GDI was billion
1/
6
, and for GDP was billion. correct answer: $18,546 and
$18,281.6
9. Using the information, which of the following factors is
responsible for the discrepancy between GDP and GDI? correct answer: Net
exports are accounted for in GDP but not in GDI.
10. When government statisticians
gather and analyze data on the value added by the firms value
added by the firms in the domestic economy, they are measuring
GDP using the . correct answer: production-based accounting
method
11. The
national income accounting identity associated with the
expendi- ture-based accounting method is represented by .
correct answer: Y = C+I+G+X-M
2/
6
Answers
1. Which of the following news stories (all published in early 2014)
would typi- cally be studied in macroeconomics? (Select all that apply.)
correct answer: "Expectations High for March Employment.", "What If Economic
Growth Is No Longer Possible?", "We Believe Inflation Should Rule Monetary Policy."
2. Produ
ction-based accounting is used to estimate GDP by . correct
answer: A and C only. (summing each firm's value added to the production process, computing for each
firm the ditterence between sales revenue and the purchase of intermediate products, then summing
this ditterence across all firms)
3. Which of the following will be considered a final good in the
calculation of U.S.
GDP? (Check all that apply.) correct answer: Defense equipment purchased by the federal
government, Golf outings at courses in North Carolina, (or Foot massages at spas in California)
4. Items are
classified as final goods only if they are the in a chain
of production. correct answer: end product
5. To generate estimates of gross domestic product (GDP), the
Bureau of Eco- nomic Analysis must aggregate a variety of data
sources, such as expenditure surveys. Which of the following are
likely to be problems while estimating GDP? (Select all that apply). correct
answer: Measuring physical depreciation of capital, Measuring black-market production
6. Which of the following pieces of information are needed for
national income accounting? (Select all that apply). correct answer: The government
would need information on both quantities produced and market prices, for every good produced
in an economy, The government would need information on all sales, including the size of all
inventories in every company.
7. Which of the following shows the expected relationship between
GDP and GDI? correct answer: GDP is equal to GDI.
8. Based on the information given in the
tables, in the first quarter of 2016, the estimate for GDI was billion
1/
6
, and for GDP was billion. correct answer: $18,546 and
$18,281.6
9. Using the information, which of the following factors is
responsible for the discrepancy between GDP and GDI? correct answer: Net
exports are accounted for in GDP but not in GDI.
10. When government statisticians
gather and analyze data on the value added by the firms value
added by the firms in the domestic economy, they are measuring
GDP using the . correct answer: production-based accounting
method
11. The
national income accounting identity associated with the
expendi- ture-based accounting method is represented by .
correct answer: Y = C+I+G+X-M
2/
6
