MACROECONOMICS 11TH EDITION BY N
GREGORY MANKIW 2026 FINAL PAPER
SOLVED QUESTIONS ANSWER KEY APLUS
◉ national income accounting.
Answer: the accounting system that measures gdp and many other
related statistics
◉ stocks and flows.
Answer: a stock is a variable measured as a quantity at a point in
time, a flow is a variable measured as a quantity per unit of time
◉ value added.
Answer: the value of a firm's output minus the value of the
intermediate goods the firm purchased
◉ imputed value.
Answer: an estimate of the value of a good or service that is not sold
in the marketplace and therefore does not have a market price
◉ nominal vs. real gdp.
,Answer: nominal gdp is measured in current dollars; not adjusted
for inflation, real gdp is measured in constant dollars; adjusted for
inflation
◉ gdp deflator.
Answer: the ratio of nominal gdp to real gdp; a measure of the
overall level of prices that shows the cost of the currently produced
basket of goods relative to the cost of that basket in a base year
◉ national income accounts identity.
Answer: the equation showing that gdp is the sum of consumption,
investment, government purchases, and net exports
◉ consumption.
Answer: goods and services purchased by consumers
◉ investment.
Answer: goods purchased by individuals and firms to add to their
stock of capital
◉ government purchases.
Answer: goods and services bought by the government
, ◉ net exports.
Answer: exports minus imports
◉ consumer price index (cpi).
Answer: a measure of the overall level of prices that shows the cost
fo a fixed basket of consumer goods relative to the cost of the same
basket in a base year
◉ pce deflator.
Answer: the ratio of nominal personal consumption expenditure to
real personal consumption expenditure; a measure of the overall
level of prices that shows the cost of the currently consumed basket
of goods relative to the cost of that basket in a base year
◉ labour force.
Answer: people who have a job or are looking for a job
◉ unemployment rate.
Answer: the percentage of those in the labour force who do not have
jobs
◉ labour-force participation rate.
Answer: the percentage of the adult population in the labour force
GREGORY MANKIW 2026 FINAL PAPER
SOLVED QUESTIONS ANSWER KEY APLUS
◉ national income accounting.
Answer: the accounting system that measures gdp and many other
related statistics
◉ stocks and flows.
Answer: a stock is a variable measured as a quantity at a point in
time, a flow is a variable measured as a quantity per unit of time
◉ value added.
Answer: the value of a firm's output minus the value of the
intermediate goods the firm purchased
◉ imputed value.
Answer: an estimate of the value of a good or service that is not sold
in the marketplace and therefore does not have a market price
◉ nominal vs. real gdp.
,Answer: nominal gdp is measured in current dollars; not adjusted
for inflation, real gdp is measured in constant dollars; adjusted for
inflation
◉ gdp deflator.
Answer: the ratio of nominal gdp to real gdp; a measure of the
overall level of prices that shows the cost of the currently produced
basket of goods relative to the cost of that basket in a base year
◉ national income accounts identity.
Answer: the equation showing that gdp is the sum of consumption,
investment, government purchases, and net exports
◉ consumption.
Answer: goods and services purchased by consumers
◉ investment.
Answer: goods purchased by individuals and firms to add to their
stock of capital
◉ government purchases.
Answer: goods and services bought by the government
, ◉ net exports.
Answer: exports minus imports
◉ consumer price index (cpi).
Answer: a measure of the overall level of prices that shows the cost
fo a fixed basket of consumer goods relative to the cost of the same
basket in a base year
◉ pce deflator.
Answer: the ratio of nominal personal consumption expenditure to
real personal consumption expenditure; a measure of the overall
level of prices that shows the cost of the currently consumed basket
of goods relative to the cost of that basket in a base year
◉ labour force.
Answer: people who have a job or are looking for a job
◉ unemployment rate.
Answer: the percentage of those in the labour force who do not have
jobs
◉ labour-force participation rate.
Answer: the percentage of the adult population in the labour force
