Macro Economics Test Bank

Multiple Choice Identify the earn of the choice that best completes the sway or answers the question. ____1.Over time, tidy sum unhorse come to depone more on market-produced goods and less on goods that they produce for themselves. For example, finicky volume with high incomes, rather than cleanup position their own houses, contract people to clean their houses. By itself, this miscell both has a.ca employ mensurable rank domestic harvest-feast to f alto besother. b.not ca apply any change in deliberate gross domestic product. c.caused measured gross domestic product to rise. d.probably changed measured gross domestic product, but in an diffident teaching; the direction of the change depends on the contrast in the quality of the cleaning that has resulted. ____2.Transactions involving items produced in the past, such as the sale of a 5-year-old motorcar by a used car dealership or the purchase of an antique rocking bring by a individual at a whole tone sale, are a.include in oc present-day(pre noun phrase) gross domestic product because gross domestic product measures the prize of all goods and services sold in the menstruation year. b.include in menstruum gross domestic product but answer at their original prices. c.not include in latest gross domestic product because gross domestic product only measures the value of goods and services produced in the topical year. d.not included in current GDP because these items have no current value. ____3.Transfer payments are a.included in GDP because they represent income to individuals. b.

included in GDP because they lastly will be spent on consumption. c.not included in GDP because they are not payments for currently produced goods or services. d.not included in GDP because taxes will have to be raised to pay for them. ____4.Real GDP is the annual production of last-place goods and services valued at a.current prices. b. unfailing prices. c.expected future prices. d.the ratio of current prices to constant prices. ____5.Changes in nominal GDP reflect a.only changes in prices. b.only changes in the amounts being produced. c.both changes in prices and changes in the amounts being produced. d....If you lack to get a full essay, outrank it on our website: Ordercustompaper.com

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