Sample Questions

Hi all , I have the Test Bank for Test Bank for Macroeconomics 7th edition by Olivier Blanchard. I put the Sample Questions and if you want to see them all you can e-mail me via There is a small amount to reach the questions
of 13
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
   Macroeconomics, 7e  (Blanchard)Chapter 2: A Tour of the Book  2.1 Aggregate Output.1) Fill in the blank for the following: GDP is the value of all ________ prou!e in a given  perio.A) final an inter"eiate goos an servi!es prou!e b# the private se!tor onl#$) final goos an servi!es%) final an inter"eiate goos an servi!es& plus raw "aterialsD) all of the above') none of the aboveAnswer: $Diff: 12) (hen using the in!o"e approa!h to "easure GDP& the largest share of GDP generall# !onsistsof A) interest in!o"e.$) labor in!o"e.%) inire!t taes.D) profits.') !apital in!o"e.Answer: $Diff: 1*) For this +uestion& assu"e that 1,- is the base #ear. Given "a!roe!ono"i! !onitions in the /nite 0tates over the past three e!aes& we know thatA) no"inal GDP is alwa#s s"aller than real GDP sin!e 1,-.$) real GDP an no"inal GDP woul be e+ual for the entire perio.%) real GDP is larger than no"inal GDP fro" 22 to 2-.D) real GDP an no"inal GDP were e+ual in 1,-.') none of the aboveAnswer: DDiff: 2) 0uppose no"inal GDP in!rease in a given #ear. $ase on this infor"ation& we know with !ertaint# thatA) real output has in!rease.$) the pri!e level GDP eflator) has in!rease.%) real output an the pri!e level GDP eflator) have both in!rease.D) either real output or the pri!e level GDP eflator) have in!rease.') real output has in!rease an the pri!e level has e!rease.Answer: DDiff: 2 1 %op#right 3 214 Pearson 'u!ation& 5n!.  6) /se the following infor"ation to answer this +uestion. 5f no"inal GDP rises fro" 71 trillion to 712 trillion& while the GDP eflator rises fro" 2. to 2.2& the  percentage  !hange in real GDP is approi"atel# e+ual toA) 819.$) 19.%) 29.D) ,.19.') 9.Answer: DDiff: 2) ;eoni! pri!ing isA) the wa# that luur# goos are pri!e in a "arket e!ono"#.$) the tenen!# for the inflation rate to rise b# greater an greater a"ounts.%) the tenen!# for no"inal GDP to rise when the pri!e level rises.D) the pro!ess of translating no"inal GDP into real GDP.') the pro!ess of pri!ing iniviual !hara!teristi!s of a goo or servi!e.Answer: 'Diff: 14) 5n a given #ear& suppose a !o"pan# spens 71 "illion on inter"eiate goos an 72 "illion on wages& with no other epenses. Also assu"e that its total sales are 7- "illion. <he value ae b# this !o"pan# e+ualsA) 72 "illion.$) 7* "illion.%) 76 "illion.D) 74 "illion.') 7- "illion.Answer: DDiff: 2-) A fir"=s value ae e+ualsA) its revenue "inus all of its !osts.$) its revenue "inus its wages.%) its revenue "inus its wages an profit.D) its revenue "inus its !ost of inter"eiate goos.') none of the aboveAnswer: DDiff: 2,) Deflation generall# o!!urs when whi!h of the following o!!urs>A) the !onsu"er pri!e ine is greater than the GDP eflator $) the !onsu"er pri!e ine e!reases%) the rate of inflation falls& for ea"ple& fro" 9 to 29D) no"inal GDP oes not !hangeAnswer: $Diff: 1 2 %op#right 3 214 Pearson 'u!ation& 5n!.  1) During the "i81,-s& we observe a signifi!ant reu!tion in oil pri!es. 5n the /nite 0tates&we woul epe!t that this reu!tion in oil pri!es woul !auseA) a larger reu!tion in the %P5 !o"pare to the GDP eflator.$) an e+ual reu!tion in the %P5 an GDP eflator.%) a larger reu!tion in the GDP eflator !o"pare to the %P5.D) no !hange in the %P5 an a reu!tion in the GDP eflator.Answer: ADiff: 211) 0uppose no"inal GDP in 2, oes not !hange !o"pare its previous level in 2-). Giventhis infor"ation& we know with !ertaint# thatA) real GDP in!rease uring 2,.$) the GDP eflator in!rease uring 2,.%) both the GDP eflator an real GDP fell uring 2,.D) "ore infor"ation is neee to answer this +uestion.Answer: DDiff: 212) During the late 1,,s& ?apan eperien!e reu!tions in the GDP eflator. Given this infor"ation& we know with !ertaint# thatA) real GDP fell uring these perios.$) real GDP i not !hange uring these perios.%) the overall pri!e level in ?apan e!rease uring these perios.D) both real GDP an the overall pri!e level e!rease uring these perios.Answer: %Diff: 21*) ;eoni! pri!ing is use toA) !onvert no"inal values to real values.$) !al!ulate the ifferen!e between no"inal GDP an real GDP.%) "easure the rate of !hange in real GDP.D) obtain !hain8weight inees.') none of the aboveAnswer: 'Diff: 11) GDP in !urrent ollars is e+uivalent to whi!h of the following>A) real GDP$) GDP in ter"s of goos%) GDP in 2 ollarsD) GDP in !onstant ollars') none of the aboveAnswer: 'Diff: 1 3 %op#right 3 214 Pearson 'u!ation& 5n!.  16) (hi!h of the following oes not   represent real GDP>A) GDP in !urrent ollars$) GDP in ter"s of goos%) GDP in base #ear ollarsD) GDP in !onstant ollarsAnswer: ADiff: 11) (hi!h of the following represents real GDP>A) GDP in !onstant ollars$) GDP in ter"s of goos%) GDP in base #ear ollarsD) all of the aboveAnswer: ADiff: 114) A!!oring to !onvention& a re!ession is referre to if an e!ono"# goes throughA) at least two !onse!utive +uarters of negative growth.$) at least three !onse!utive +uarters of negative growth.%) at least four +uarters of negative growth.D) at least two !onse!utive "onths of negative growth.Answer: ADiff: 11-) $ase on the notation presente in %hapter 2& whi!h of the following epressions represents real GDP>A) @t$) Pt@t%) @tPtD) 7@tPtAnswer: ADiff: 11,) Beasures of aggregate output have been publishe on a regular basis in the /nite 0tates sin!eA) 1,4.$) 1,**.%) 1,14.D) 1,.Answer: ADiff: 1 4 %op#right 3 214 Pearson 'u!ation& 5n!.  2) (hi!h of the following about !apital in!o"e is not   !orre!t>A) 5t refers to a fir"=s revenue.$) 5t is also !alle profit in!o"e.%) 5t goes to the fir"s.D) 5t a!!ounts for less than *69 of in!o"e in avan!e !ountries.Answer: ADiff: 121) 'plain the three wa#s GDP !an be "easure.Answer: GDP !an be "easure three wa#s. First& GDP represents the "arket value of the final goos an servi!es prou!e in the e!ono"# uring a given perio. <his woul be obtaine b# aing %& 5& G& an C. 0e!on& GDP is the su" of the value ae b# fir"s. <he value ae for a fir" e+uals the value of the prou!tion at that stage of the prou!tion pro!ess) "inus the value of the inter"eiate goos e!luing labor servi!es). <he final value of aggregate output !an be !al!ulate b# either su""ing the value of all final goos an servi!es OE b# su""ing the value ae of all goos an servi!es at ea!h stage of prou!tion. An finall#& GDP is also the su" of all in!o"es earne in a given perio.Diff: 122) First& efine no"inal GDP an real GDP. 0e!on& is it possible for no"inal GDP in a #ear to  be less than real GDP in the sa"e #ear> 'plain.Answer: Co"inal GDP represents the value of goos an servi!es prou!e using !urrent  pri!es. Eeal GDP "easures the value of the sa"e goos an servi!es using so"e base #ear  pri!es. 5t is possible for no"inal GDP to be less than real GDP in a given #ear. Given the efinitions of the two variables& this will o!!ur if pri!es in that #ear are si"pl# less than pri!es in the base #ear. 5f& for ea"ple& the base #ear is 22& it will generall# be the !ase that no"inal GDP will be less than real GDP for those #ears prior to 22 given that pri!es have generall# risen in all #ears.Diff: 22*) 'plain whether it is possible for no"inal GDP to in!rease an real GDP to e!rease in the sa"e perio.Answer: Co"inal GDP !an rise be!ause either the pri!e level is rising or the real +uantit# of goos an servi!es prou!e has in!rease. Co"inal GDP !an in!rease while real GDP falls if the in!rease in the aggregate pri!e level is larger in a proportionate sense) than the rop in real e!ono"i! a!tivit#.Diff: 2 5 %op#right 3 214 Pearson 'u!ation& 5n!.
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks

We need your sign to support Project to invent "SMART AND CONTROLLABLE REFLECTIVE BALLOONS" to cover the Sun and Save Our Earth.

More details...

Sign Now!

We are very appreciated for your Prompt Action!