ECON 312 Week 5 Homework Latest
ECON 312 Week 5 Homework Latest
ECON 312 Week 5 Homework Latest
The figure shows the flows of expenditure and income on Lotus Island.
In 2013, R was $1515 billion; W was $31 billion; U was $15 billion; X was $19 billion; and Z was $3 billion.
Calculate total expenditure and total income.
Total expenditure is $68 billion.
Total income is $68 billion.
Categorize the following items as a final good, an intermediate good, or neither.
Type “F’ for a final good, “I” for an intermediate good, and “N” for neither.
The garbage can you bought when you moved into residence
Sugar purchased by Angelo’s bakery to make pies and cakes
Concrete purchased by Your Swimming Pool Inc.
Shares in Ford Motor Company
In 2010, U.S. exports of goods and services were $1,844 billion and imports of goods and services were $2,356 billion.
What was the value of net exports?
The value of net exports in 2010 was ____________ billion dollars.
The table shows some of the items in the U.S. National Income and Product Accounts in 2010.
Use the expenditure approach to calculate U.S. GDP in 2010.
U.S. GDP in 2010 using the expenditure approach was
|Item||Amount (trillions of dollars)|
|Indirect taxes less subsidies||1.0|
|Net factor income from abroad||0.2|
The table shows an economy’s total production and the prices of the final goods it produced in 2013 and 2014.
Calculate nominal GDP in 2013 and nominal GDP in 2014.
Nominal GDP in 2013 is $_____
Nominal GDP in 2014 is $_______
Which of the following are included in the income approach to measuring GDP
A. wages; investment; consumption expenditure
B .profit; wages; government expenditure on goods and services
C. interest; profit; investment
D. interest; profit; wages
The table gives data about Northland’s economy in 2010.
What is the value of GDP in Northland in 2010
A. $1,371 billion
B. $1,032 billion
C. $2,403 billion
D. $1,526 billion
|Indirect taxes less subsidies||155|
|Net exports of goods and services||52|
|Government expenditure on goods and services||298|
Real GDP ______.
A. accurately measures leisure time and life expectancy but does not accurately measure the general health of the population
B. accurately measures environment quality and political freedom, but it does not accurately measure underground economic activity
C. does not accurately measure household production comma underground economic activity comma or life expectancy
D. accurately measures household production, but does not accurately measure catastrophic weather such as hurricanes and ice storms
A. The underground economy is difficult to describe but easy to measure.
B. Preparing meals comma cleaning the kitchen comma and cutting the grass are household activities that are not included in GDP.
C. Leisure time is an economic good.
D. The underground economy is the part of the economy that is hidden from the view of the government.
The business cycle is a _____ but _____ up-and-down movement of total _____ and other measures of economic activity.
A. occasional; regular; consumption
B. periodic; irregular; production
C. periodic; irregular; consumption
D. occasional; regular; production
Which of the following countries is facing a recession
A. The Bank of England raised the country’s interest rate from 0.5 percent in the first quarter to 0.9 percent in the second quarter of 2013.
B. The United States faced a change in the inflation rate from 2.2 percent in 2012 to 1.7 percent in 2013.
C. Japan’s real GDP of 3.8 percent in the first quarter decreased by 0.3 and 0.4 percent respectively in the second and third quarters of 2012.
D. India’s real GDP of 5.3 percent in the second quarter increased by 0.4 percent in the third quarter of 2012
Chained-dollar real GDP is the measure of real GDP calculated by the _____.
A. Federal Reserve
B. Bureau of Economic Analysis
C. U.S. Department of Commerce
D. Bureau of Labor Statistics
The table shows some data for an island economy which produces only smoothies and milkshakes.
The base year is 2012.
Calculate the value of 2013 production in 2012 prices and the percentage increase in production when valued at 2012 prices.
The value of 2013 production in 2012 prices is $_________
The percentage increase in production when valued at 2012 prices is ____________
>>> Answer to 1 decimal place.
The table shows some data for an island economy which produces only dog leashes and dog collars.
The base year is 2012.
Calculate real GDP in 2012 and real GDP in 2013 using the chained-dollar method.
Real GDP in 2012 using the chained-dollar method is __________
Real GDP in 2013 using the chained-dollar method is ________
>>> Answer with a whole number.
Suppose an economic slump in the rest of the world decreases U.S. exports.
As a result, there is ______ in the U.S. production function, and ______ in the U.S. demand for labor.
A. a downward shift; a decrease
B. no shift; a decrease
C.an upward shift; an increase
D.an upward shift; no change
E.no shift; no change
There is ___________in the U.S. supply of labor.
The tables set out information about the economy of Athabasca.
Suppose the labor force participation rate of Athabasca increases.
When the labor force participation rate of Athabasca increases, employment increases.
When the labor force participation rate of Athabasca increases, potential GDP ______, and the real wage rate ______.
A. increases; decreases.
B. decreases; decreases
C. increases; increases
D. decreases; increases
Table 1 Production Function
|Labor hours (millions)||Real GDP (millions of dollars)|
Table 2 Labor Market
|Real wage rate (dollars per hour)
(millions of hours per year)
|Quantity of labor demanded||Quantity of labor supplied|
Suppose migration into the United States increases the working -age population.
As a result, there is ______ in the U.S. production function.
A. no shift
B. an upward shift
C. a downward shift
There is ______ in the U.S. demand for labor and ______ in the U.S. supply of labor.
A. a decrease
B. no change no change
C. a decrease; no change
D.no change; an increase
According to classical macroeconomics, ______.
A. lower taxes increase economic growth
B. no remedy by government can improve on the performance of the market
C. government spending must rise to counter the problem of too little private spending
D. full employment will never occur without constant government intervention
Keynes’ theory was that ______.
A. prices and wages react quickly to shocks in the economy
B. an economy will gradually work itself out of depression with no government intervention
C. too much government spending is the cause of depression and recession
D. too little private spending is the cause of depression and recession
The table provides some data for an economy in 2011 and 2012.
Calculate the growth rate of real GDP in 2012.
The growth rate of real GDP in 2012 is ________ percent.
|Aggregate hours (billions)||80.0||81.2|
|Real GDP (billions of 2009 dollars)||4,000||4,200|
The table provides some data for an economy in 2012 and 2013.
Calculate labor productivity in 2012 and 2013.
>>> Answer to 2 decimal places.
Labor productivity in2012 is $ __________an hour.
Labor productivity in 2013 is $________an hour.
|Aggregate hours (billions)||200.0||206.7|
|Real GDP (billions of 2009 dollars)||10,000||10,800|
Just six months ago, the Indian economy was growing rapidly; now growth has halted. India needs to spend $500 billion upgrading its infrastructure and education and health-care facilities. Agriculture remains unproductive; and reforms, like strengthening the legal system, have been ignored.
Read the news clip, then answer the following question.
Activities that could lead to faster economic growth in India include all of the following except ______.
A. implementing better technology on farms because it increases the productivity of farm workers
B. improving health care because it increases human capital
C. improving energy use because it is a technological advance.
D. slowing population growth because it increases labor productivity
E. investing in education and health-care facilities because it increases India’s stock of physical capital
Markets are a necessary precondition for economic growth because ______.
A. they encourage conservation of nonrenewable resources
B. they create incentives to save and invest
C. They encourage more imports and more exports
D. they provide a mechanism for governments to decrease transfer payments
E. markets create jobs
Economic freedom is a condition in which people are able to make _____ choices, their private property is _____, and they _____ markets.
A. personal; protected by the rule of law; are free to buy and sell in
B. personal; at risk from theft; must buy and sell in regulated
C. public; at risk from theft; must buy and sell in regulated
D. public; protected by the rule of law; are free to buy and sell in
An economy can achieve faster economic growth without ______.
A.an increase in the population growth rate
B. markets and property rights
C. incentives to encourage the research for new technologies
D. people being willing to save and invest
The United States is at full employment. Suppose that union wage settlements union wage settlements push the money wage rate upward push the money wage rate upward by 10 percent.by 10 percent.
Draw a curve to show the effect of this event on aggregate supply. Label it AS1.
If potential GDP increases, ______.
A. there is no change in aggregate supply
B. the AS curve and the AD curve both shift rightward
C. the AS curve shifts rightward
D. aggregate supply increases when the economy reaches an inflationary gap
If the price level increases, ______.
A. aggregate supply increases
B. the quantity of real GDP supplied increases
C. the quantity of real GDP supplied decreases
D. aggregate supply decreases
The graph shows an economy’s aggregate demand curve.
Draw a curve to show the effect on aggregate demand today of an increase in expected future income. Label it.
An increase in expected future income __________aggregate demand today; an increase in the expected future inflation rate ________aggregate demand today; and an increase in expected future profit ________aggregate demand today.
In the graph, the initial aggregate supply curve is AS0 and the initial aggregate demand curve is AD0.
Some events that could have changed aggregate demand from AD0 to AD1 are ______.
A. an increase in transfer payments or an increase in taxes
B. an increase in taxes or an increase in expected future profits
C. a decrease in the money wage rate or an increase in potential GDP
D. an increase in transfer payments or an increase in expected future profits
E.an increase in taxes or an increase in interest rates
Following the change in aggregate demand, the new equilibrium is at ______.
A. point A
B. point B
C. point C
D. point D
If potential GDP is $1 trillion, the economy has__________gap.
The table shows aggregate demand and short-run aggregate supply in Japan. Potential GDP is 600 trillion yen.
|Price level (GDP price index)
(trillions of 2005 yen)
|Real GDP demanded||Real GDP supplied|
Use the data to draw the aggregate demand curve and the aggregate supply curve. Label the curves.
Draw the potential GDP line and label it.
Draw a point at the short-run equilibrium.
The short-run macroeconomic equilibrium real GDP is yen___________trillion and the equilibrium price level is _______.
The size of the ____________gap is yen¥__________ trillion.
Full-employment equilibrium occurs when equilibrium real GDP _____.
A. equals potential GDP
B. equals the price level
C. exceeds potential GDP
D. equals the interest rate
A recessionary gap is a gap that exists when potential GDP _____ real GDP and that brings a _____ price level.
An inflationary gap is a gap that exists when real GDP _____ potential GDP and that brings a _____ price level.
A. exceeds; falling; exceeds; rising
B. is less than; falling; exceeds; falling
C. exceeds; rising; exceeds; falling
D. exceeds; rising; is less than; falling
A real business cycle is a cycle that results from fluctuations in the pace of growth of _____ and _____.
A. labor productivity; potential GDP
B. real GDP; potential GDP
C. output; real GDP
D. labor productivity; the real wage rate
Demand-pull inflation is an inflation that starts because _____.
A. real GDP increases
B. aggregate supply decreases
C. aggregate demand increases
D. of labor productivity growth
Cost-push inflation is an inflation that begins with an increase in _____.
A. aggregate demand
C. real GDP
D. aggregate supply
Macroeconomic equilibrium occurs when the quantity of real GDP ______ equals the quantity of ______.
A. supplied; potential GDP
B. demanded; real GDP supplied
C. demanded; real GDP supplied and potential GDP
D. demanded; potential GDP