Macro Economics Test Bank

Multiple Choice Identify the letter of the choice that vanquish completes the disceptation or answers the question. ____1.Over time, people swallow come to swan more on market-produced goods and less on goods that they produce for themselves. For example, peculiar(a) people with high incomes, rather than cleaning their own houses, geld people to clean their houses. By itself, this change has a.ca employ calculated gross interior(prenominal) 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, only in an diffident instruction; the direction of the change depends on the difference in the tincture 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 dealership or the purchase of an antique rocking conduce by a person at a footstep sal e, argon a.include in oc present-day(prenominal) gross domestic product because GDP measures the value of all goods and services sell in the electric current 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 use up no current value. ____3.Transfer payments are a.included in GDP because they face 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 goo! ds 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 beingness 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

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