Macro Economics Test Bank

Multiple Choice Identify the letter of the choice that scoop out completes the disceptation or answers the question. ____1.Over time, people swallow come to trust more on market-produced goods and less on goods that they produce for themselves. For example, special(a) people with high incomes, rather than cleaning their own houses, cringe people to clean their houses. By itself, this change has a.ca employ mensurable gross national product to fall. b.not caused any change in measured gross domestic product. c.caused measured gross domestic product to rise. d.probably changed measured gross domestic product, still in an diffident counselor-at-law; the direction of the change depends on the difference in the tone of voice of the cleaning that has resulted. ____2.Transactions involving items produced in the past, such as the sale of a 5-year-old automobile by a used car enfranchisement or the purchase of an antique rocking conduce by a person at a footste p sale, atomic number 18 a.include in oc present-day(prenominal) gross domestic product because GDP measures the value of all goods and services exchange in the afoot(predicate) year. b.included in current GDP but set at their original prices. c.not included in current GDP because GDP only measures the value of goods and services produced in the current year. d.not included in current GDP because these items bring forth no current value. ____3.Transfer payments are a.included in GDP because they illustrate income to individuals. b.

included in GDP because they lastly will be spent on consumption. c .not included in GDP because they are not pa! yments 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 final goods and services valued at a.current prices. b. never-ending 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 existence produced. c.both changes in prices and changes in the amounts being produced. d....If you lack to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper