Question 1 2 pts (02.01 MC) Which of the following goods would be directly counted as part of a country's GDP? The change in business inventories from the previous year A stimulus check from the government to households The market value of tutoring services freely provided by a non-prot The aggregate total of childcare services provided by older siblings The sales of American companies from factories located outside the United States Question 2 2 pts (02.01 LC) The circular ow model of the economy divides economic activity into two broad categories, which are capital production and government spending value-added and expenditures factor markets and product markets businesses and banking institutions private and public enterprise Question 3 2 pts (02.01 HC) Use the table to answer the question that follows. Wages received by employees $15 trillion Bonuses received by employees $6 trillion Rent on land $12 trillion Dividends earned by stockholders | $8 trillion Profits earned by firms $19 trillion Interest received on capital $7 trillion Net income from abroad $13 trillion Calculate the GDP of the country according to the income approach. The GDP of the country is $80 trillion. The GDP of the country is $67 trillion. The GDP of the country is $65 trillion. The GDP of the country is $61 trillion. O The GDP of the country is $59 trillion.Question 4 2 pts (02.02 MC) Which of the following would be counted as part of GDP, as calculated by the expenditures approach? Medical advice offered by a doctor to a relative An increase in leisure time due to a technological breakthrough Informal economic transactions using only cash Money spent by a business on new production equipment The prots shared by stockholders of a major company Question 5 2 pts (02.02 MC) The GDP is a measure of the ________ of a country but does not take into account the ________ . productivity; cost of environmental pollution standard of living; compensation given to employees purchasing power; non-market transactions in the country life expectancy; private consumption by households government spending; contribution of household members in childcare Question 6 2 pts (02.03 HC) The Bureau of Labor Statistics takes a survey and reports the following unemployment data: Number of Workers Classied as Employed 180 million Number of Workers Cyclically Unemployed 9 million Number of Workers Frictionally Unemployed 4 million Number of Workers Structurally Unemployed 7 million Working-age Population 300 million Based on this data, what is the unemployment rate for the economy? 10 percent 16.7 percent 40 percent 60 percent 90 percent Question 7 2 pts (02.03 HC) The Bureau of Labor Statistics takes a survey and reports the following unemployment data: Number of Workers Classied as Employed 178 million Number of Workers Cyclically Unemployed 12 million Number of Workers Frictionally Unemployed 3 million Number of Workers Structurally Unemployed 7 million Working-age Population 300 million Based on this data, what is the natural unemployment rate in the economy? 3.3 percent 5 percent 6 percent 12 percent 33 percent Question 8 2 pts (02.03 MC) If an unemployed worker does not take any action to seek employment for more than four weeks, which of the following would happen to the employment statistics? The unemployment rate and the labor force participation rate would both increase. The unemployment rate would increase, and the labor force participation rate would decrease. The unemployment rate and labor force participation rate would decrease. The unemployment rate would decrease, and the labor force participation rate would increase. The unemployment rate would stay constant, and the labor force participation rate would decrease. Question 9 2 pts (02.03 LC) Mary was red from the car factory where she used to work and was replaced by machines, and Frank quit his job voluntarily and is in search of a new one. Which types of unemployment will these two individuals be categorized in? Marycyclical unemployment; Frankfrictional unemployment Marystructural unemployment; Frankcyclical unemployment Marydiscouraged unemployment; Frankcyclical unemployment Marystructural unemployment; Frankfrictional unemployment Maryfrictional unemployment; Frankdiscouraged unemployment Question 10 2 pts (02.03 MC) An economy's structural unemployment rate is 2 percent, its frictional unemployment rate is 4 percent, and its cyclical unemployment rate is 3 percent. Based on this data, its natural unemployment rate is ________ and its actual unemployment rate is ________ . 5 percent; 6 percent 6 percent; 9 percent 7 percent; 9 percent 9 percent; 7 percent 9 percent; 6 percent Question 11 2 pts (02.03 MC) Under which scenario will the actual rate of unemployment be higher than the natural rate of unemployment? Recession in the business cycle Replacement of human labor by machinery Aggregate demand in the economy increases Decrease in skilled workers Fewer workers seeking better paying jobs Question 12 2 pts (02.04 MC) A consumer price index going from 140 in year 1 to 130 in year 2 means the economy is experiencing O depression O deflation O inflation O recession O stagflationQuestion 13 2 pts (02.04 MC) If the CPI for a given year is 170 and the price of a basket of goods is $40 in the base year, what is the price of the basket in the given year? $4.25 $23 $68 $40 Question 14 2 pts (02.04 HC) Assume that only two goods are produced in an economy, A and B. In the base year, 6 units of A are produced at a price of $3 and 5 units of B are produced at a price of $2. And in the given year, 6 units of A are produced at a price of $2 and 5 units of B are produced at a price of $6. What is the CPI for the given year? Question 15 2 pts (02.04 LC) The consumer price index tends to the substitution of lower-priced goods, which has the effect of inflation. O underrepresent; overstating O underrepresent; understating overrepresent; overstating O overrepresent; understating O ignore; understatingQuestion 16 2 pts (02.05 LC) If the government of a country instituted a policy that led to an unexpected decrease in consumer prices, which of the following groups would inherently benefit? O People whose incomes are automatically adjusted with inflation People on fixed incomes O Borrowers of fixed interest rates O Borrowers of variable interest rates O Businesses that had taken out large capital loansQuestion 17 2 pts (02.05 MC) If a bank offers a home loan with a fixed interest rate of 8 percent with an expected inflation rate of 4 percent. If the inflation rate ends up being 5 percent, which accurately describes the impact on the bank? O It benefited because the real interest rate increased by 1 percent. O It benefited because the real interest rate increased by 4 percent. O It lost financially because the real rate of interest decreased by 1 percent. Its expected gains increased because the real rate of interest increased to 9 percent. O The bank's real interest rate was not impacted by the difference in the inflation rate.Question 18 2 pts (02.06 MC) Use the data table to answer the question that follows. Year Nominal GDP GDP Deflator 2000 $100 billion 80 2001 $117 billion 90 2002 $135 billion 100 2003 $200 billion 160 2004 $225 billion 250 In which year was real gross domestic product the greatest? 2000 O 2001 2002 O 2003 O 2004Question 19 2 pts (02.06 MC) Assume that in an economy, the value of the total output at current prices is $450 billion when the GDP Deflator is 150 for Year 1, and in Year 2, it is $675 billion when the GDP Deflator is 225. Which of the following statements is true in this scenario? O The value of the total output adjusted for inflation has increased by $225 billion in year 2. O The value of the total output adjusted for inflation has increased by $300 billion in year 2. O The value of the total output adjusted for inflation has decreased by $225 billion in year 2. O The value of the total output adjusted for inflation has remained the same in year 2. O There is insufficient data to determine the value of the total output adjusted for inflation in year 2.Question 20 2 pts (02.06 MC) Use the data table to answer the question that follows. Year Nominal GDP GDP Deflator 2008 $50,000 200 2009 $55,000 220 Based on the data above, which of the following must have occurred from 2008 to 2009? O Real GDP decreased by 20 percent. Real GDP decreased by 10 percent. O Real GDP increased by 20 percent. Real GDP increased by 10 percent. Real GDP did not change.Question 21 2 pts (02.06 MC) If the real GDP and nominal GDP are $200 billion and $620 billion respectively, what is the value of the GDP deflator? O 322 O 320 O 312 O 330 O 310Question 22 2 pts (02.07 LC) At the current equilibrium real GDP, there is a recessionary output gap. Which of the following must be true? There is no cyclical unemployment. The economy is expanding. The economy is at full employment. The actual unemployment rate is higher than the natural rate. There is ination that is higher than expected. Question 23 2 pts (02.07 MC) Use the graph to answer the question that follows. f. Long term trend Which point on the business cycle represents a negative output gap in the economy? Both A and C Both B and C Question 24 2 pts (02.07 MC) A country's unemployment rate is extraordinarily low and ination is beginning to rise sharply. Its real GDP growth is still positive but has started to slow down. Which point of the business cycle best describes this economy? Peak Trough Contraction Potential and real GDP are equal Cyclical unemployment is greater than the NRU