level is the a) GDP deflator.* b) consumer price index. c) producer price index. d) d. gross domestic product. 2. If the value of a price index was 125 for 2005 and 75 for 1982, and GDP was 2500 in 2005 compared to 600 in 1982, the value of real 2005 GDP in terms of 1982 prices is a) 1500.* b) 1000. c) 2500. d) 360. 3. The index that measures the change in price of a typical basket of consumer goods is a) the GDP deflator. b) the consumer price index.* c) nominal GDP. d) real GDP. 4. Personal income
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ECON545 Quiz 2 Guidelines Recall that Keller courses are built around Terminal Course Objectives (TCOs). At the conclusion of the course, you will even be asked to rate the extent to which the TCOs have been covered. There are 9 TCOs specified for GM545. Review the TCOs by clicking on Course Syllabus at the top of the course home page, and then clicking on the Terminal Course Objectives link. Also, please note that the TCO(s) to be covered during any given week are specified in the Objective
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the GDP, which shows how much a nation has grown by calculating the market value for goods and services made domestically in that nation over a one-year period. The government releases the GDP every three months, and usually has information revised monthly (Griffis, 2012). The “Real” GDP is an inflation-corrected GDP with a more accurate figure because the report accounts for changes in price levels and is a good indicator of how well the economy is doing (Investopedia, 2012). The Nominal GDP is the
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Learaye Macroeconomics Economic Growth & GDP “Gross domestic product does not allow for the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of neither public debate not the integrity of our public officials. It measures neither our courage nor our wisdom, not the devotion to our country. It measures everything, in short, except that which makes life worthwhile
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unemployment attributable to a lack of job vacancies no economic growth = no jobs 5. Calculating a bank’s excess reserves Reserve ration=bank reserves/total deposits Required reserves=required reserve ratio X total deposits Excess Reserves=total reserves – required reserves 6. Differences in computing GNP and GDP GNP includes all outputs of a nation even if they are made outside the country. GDP only totals what is produce in the borders of a nation even if the company is
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“National Income is the sum of factor income earned by the normal residents of a country in the form of wages, rent, interest and profit in an accounting year.” Concepts of National Income There are different concepts of National Income, namely; GNP, GDP, NNP, Personal Income and Disposable Income. Gross National Product (GNP) GNP at market price is sum total of all the goods and services produced in a country during a year and net income from abroad. GNP is the sum of Gross Domestic Product at Market
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“National Income is the sum of factor income earned by the normal residents of a country in the form of wages, rent, interest and profit in an accounting year.” Concepts of National Income There are different concepts of National Income, namely; GNP, GDP, NNP, Personal Income and Disposable Income. Gross National Product (GNP) GNP at market price is sum total of all the goods and services produced in a country during a year and net income from abroad. GNP is the sum of Gross Domestic Product at Market
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do you think it would work? (10 points) Macroeconomics Question 1 A. Distinguish between nominal and real GDP. Why is real GDP the relevant concept when discussing economic growth? (4 points) B. What is the formula for calculating unemployment rate? Explain why an adult may not be counted as unemployed even though he/she is not working. (6 points) Question 2 A. Name and discuss the four main reasons
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1. (TCO A) Suppose you are hired to manage a small manufacturing facility that produces Widgets. (a.) (15 points) You know from data collected on the Widget Market that market demand has recently increased and market supply has recently decreased. As manager of the facility, what decisions should you make regarding production levels and pricing for your Widget facility? Remember that supply and demand are about the market supply and market demand, which is bigger than your own company. You
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agree. One term used in economics is gross domestic product or GDP. GDP is defined as the final count on products that are manufactured within a given country and under a certain time period. The GDP includes products consumed for public and private use, government use, exports, and investments. Imports are not calculated in GDP because these goods are not produced in the specific country. The formula for calculating the GDP is GDP = C + G + I + NX. The C in this expression stands for the consumption
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