MACROECONOMICS 11TH EDITION BY N
GREGORY MANKIW 2026 MOCK PAPER
COMPREHENSIVE REVIEW NOTES ANALYTICAL
SUMMARY
◉ If GDP (measured in billions of current dollars) is $5,465,
consumption is $3,657, investment is $741, and net exports are -
$1,910, then government purchases are:
Answer: $5,465= $3,657 (C)+$741(I)-$1,910(NX)+G
G= $2,977
◉ Real GDP is a better measure of economic well-being than
nominal GDP, because real GDP:
Answer: measures changes in the quantity of goods and services
produced by holding prices constant.
◉ If the number of employed increases while the number of
unemployed does not change, the unemployment rate:
Answer: will decrease
◉ When prices of different goods are increasing by different
amounts, the price index that will usually rise the fastest is:
Answer: the CPI
, ◉ Assume that the adult population of the United States is 191.6
million, total employment is 117.6 million, and 9.4 million are
unemployed. Then the unemployment rate, as normally computed, is
approximately ___ percent.
Answer: (unemployed)/(employment+unemployed)=
unemployment rate
(9.4)/(117.6+9.4) million
◉ When bread is baked but put away for later sale, this is called:
Answer: investment in inventory
◉ In 2013, the GDP of the United States totaled about:
Answer: $16.8 trillion
◉ An estimate of the number of unemployed workers in the
economy can be obtained from:
Answer: from the household survey, but not from the establishment
survey
◉ The market value of all final goods and services produced within
an economy in a given period of time is called:
Answer: gross domestic product
GREGORY MANKIW 2026 MOCK PAPER
COMPREHENSIVE REVIEW NOTES ANALYTICAL
SUMMARY
◉ If GDP (measured in billions of current dollars) is $5,465,
consumption is $3,657, investment is $741, and net exports are -
$1,910, then government purchases are:
Answer: $5,465= $3,657 (C)+$741(I)-$1,910(NX)+G
G= $2,977
◉ Real GDP is a better measure of economic well-being than
nominal GDP, because real GDP:
Answer: measures changes in the quantity of goods and services
produced by holding prices constant.
◉ If the number of employed increases while the number of
unemployed does not change, the unemployment rate:
Answer: will decrease
◉ When prices of different goods are increasing by different
amounts, the price index that will usually rise the fastest is:
Answer: the CPI
, ◉ Assume that the adult population of the United States is 191.6
million, total employment is 117.6 million, and 9.4 million are
unemployed. Then the unemployment rate, as normally computed, is
approximately ___ percent.
Answer: (unemployed)/(employment+unemployed)=
unemployment rate
(9.4)/(117.6+9.4) million
◉ When bread is baked but put away for later sale, this is called:
Answer: investment in inventory
◉ In 2013, the GDP of the United States totaled about:
Answer: $16.8 trillion
◉ An estimate of the number of unemployed workers in the
economy can be obtained from:
Answer: from the household survey, but not from the establishment
survey
◉ The market value of all final goods and services produced within
an economy in a given period of time is called:
Answer: gross domestic product
