1. Macroeconomics is primarily concerned with the measurement and behavior of three aggregates. Which of the following is not one of the three aggregates? A. The level of production B. The level of employment C. The price level D. The interest rate on government securities, like T-bills.

2. Which of the following economic phenomena does not fall under the study of macroeconomics? A.The level of RGDP in a nation's economy over time. B.The national level of unemployment C.The rate of inflation in the economy over time.

D.Profit changes of Ford Motor Company over time.

3.Gross Domestic Product (GDP) is: A.the monetary value of all goods and services (final, intermediate, and non-market) produced in a given year. B.total resource income less taxes, saving, and spending on exports. C.the economic value of all economic resources used in the production of a year's output less capital depreciation D.the market value of all final goods and services produced within a nation in a specific year.

Answer question 4 using the following data for Nation K which produces 3 final goods: Cars, Computers, and Shirts

Good Units Produced Price/unit

Cars 1,000 $15,000

Computers 3,000 $1,000

Shirts 50,000 $20

4.GDP for Nation K is: A.$19,000,000 B. $16,020 C. $1,900,000 D. $54,000

5.Using the expenditure method, GDP is calculated by summing: A.consumption, investment, government purchases, and (exports + imports) B.consumption, investment, government purchases, and net exports. C.consumption, investment, wages, and rents. D.consumption, investment, government purchases, and imports.

Answer question 6 on the basis of the following national income data for the economy. All figures are in billions of dollars.

Personal consumption expenditures $400 Government purchases 128 Gross private domestic investment Net exports 7 Net foreign factor income Consumption of fixed capital 43 Taxes on production and imports 50 Compensation of employees 369 Rents 12 Interest 15 Proprietors' income 52 Corporate income taxes 36 Dividends Undistributed corporate profits Statistical discrepancyPrice Price Units of of bagel index Year Output per unit (year 1 = 100) $10 100 20 200 30 300 40 4003 Price level 4 0 Real domestic output\fAS1 AS2 AS2 AS1 Price level Price level AD AD Real domestic output Real domestic output (A) (B) AS AS Price level Price level "AD AD O Real domestic output "Real domestic output (C) (D)