1. Which of the following represents an economy's output or GDP?

Group of answer choices

A. The total income households receive from providing all of the factors of production to businesses.

B. The wages households receive from providing labor to businesses.

C. The market value of an economy's production of final goods and services.

D. Both A and C are correct.

1. Which of the following best defines Aggregate Income?

Group of answer choices

A. The revenue businesses receive from providing goods to government.

B. The income households receive from providing land, labor, capital, and entrepreneurs to businesses.

C. The profit businesses earn from selling land to households.

D. All of the above are correct.

1. If Robinson Crusoe, a one person economy, catches 150 fish one year as well as makes three fishing poles, his annual

Group of answer choices

A. Output is 150 fish and three fishing poles.

B. Income is 150 fish and three fishing poles.

C. GDP is 150 fish and three fishing poles.

D. All of the above are correct.

1. Same question as above but assume Robinson breaks and hence discards one fishing pole during the year.

Group of answer choices

A. GDP is 150 fish and three fishing poles.

B. Depreciation is one fishing pole.

C. NDP is 150 fish and two fishing poles.

D. All of the above are correct.

1. The largest component of GDP is:

Group of answer choices

A. Consumption spending.

B. Gross investment spending.

C. net exports.

D. government spending.

1. Which of the following equations is the correct?

Group of answer choices

A. GDP = X + K - R2

B. GDP = C + I + G + X + M

C. GDP = C + I + G - X - M

D. GDP = C + I + G + X - M

1. Refer to the table below. What is the economy's GDP?

Consumption $220.0 trillion

Gross Investment 40.0

Net Investment 25.0

Government Purchases 50.0

Exports 25.0

Imports 20.0

Group of answer choices

A. $250

B. $290

C. $310

D. $315

1. What is the economy's NDP?

Group of answer choices

A. $250

B. $275

C.$295

D. $300

1. What is the economy's depreciation?

Group of answer choices

A. $15.0

B. $20.0

C. $25.0

D. $30.0

1. What is the economy's net exports?

Group of answer choices

A. $5.0

B. - $5.0

C. - $10.0

D. $10.0

11. Given the following information, what is Aggregate Income?

Employee Compensation $20.0 trillion

Gross Investment 8.0

Net Investment 7.0

Rent 5.0

Transfer Payments 4.0

Interest 5.0

Profits 10.0

Group of answer choices

A. $40.0

B. $50.0

C. $60.0

D. $70.0

12. Compared to 2021 Q4, 2022 Q2 Real GDP

Group of answer choices

A. is higher by about 30 percent.

B. is lower by about one percent.

C. is higher by about one percent.

D. is lower by about 10 percent.

13. Suppose that nominal GDP doubles while prices double. We can conclude that real GDP

Group of answer choices

A. more than doubled.

B. doubled.

C. remained constant.

D. Decreased

14. If nominal GDP is $10 trillion and real GDP is $8 trillion, the price index (GDP deflator) is

Group of answer choices

A. 0.750

B. 1.125

C. 1.250

D. 2.000

15. Which best defines inflation?

Group of answer choices

A. a continuous rise in wage rates.

B. a continuous rise in the average price of goods and services.

C. a continuous rise in the average price of gas and food.

D. tuition at Utah State University.

16. If nominal GDP is $10 trillion and Price Index (GDP deflator) is 1.0, real GDP is

Group of answer choices

A. $10.00 trillion

B. $12.50 trillion

C. $8.00 trillion

D. $ 5.00 trillion

17. Between July 2021 and July 2022, the consumer price index:

Group of answer choices

A. increased by over 10.0 percent.

B. held steady.

C. increased by over 8.0 percent.

D. cannot be determined without knowing the base year.

18. Real GDP would decrease by 3 percent if nominal GDP increased by:

Group of answer choices

A. 1.0 percent and prices increased by 2.0 percent.

B. 6.0 percent and prices increased by 2.0 percent.

C. 0.0 percent and prices increased by 3.0 percent.

D. 3.0 percent and prices increased by 0 percent.

19. If the nominal interest rate is 3% and inflation is 8%, the real interest rate is

Group of answer choices

A. -5.0%

B. 5%

C. 3%

D. 8%

20. Which of the following can be negative?

Group of answer choices

A. Nominal GDP

B. Real GDP

C. Net Exports

D. Gross Investment