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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 beste.ergen@hotmail.com There is a small amount to reach the questions
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   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!.
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