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Macroeconomics (ECON 202) Exam 2 Questions with Correct Answers
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Macroeconomics (ECON 202) Exam 2 Questions with Correct Answers
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Macroeconomics (ECON 202) Exam 2 Questions withCorrect Answers
Microeconomics Correct Answer-The study of how households and
firms make decisions and how they interact in markets
Macroeconomics Correct Answer-The study of the economy-wide
phenomena, including inflation, unemployment and economic growth.
Gross Domestic Product (GDP) Correct Answer-The market value of all
final goods and services produced within a country in a given period of
time.
Consumption Correct Answer-Spending by households on goods and
services, with the exception of purchases of new housing
Investment Correct Answer-Spending on a capital equipment,
inventories, and structures, including household purchases of new
housing
Government Purchases Correct Answer-Spending on goods and services
by local, state, and federal governments
Net Exports Correct Answer-Spending on domestically produced goods
by foreigners (exports) minus spending on foreign goods by domestic
residents (imports)
, Nominal GDP Correct Answer-The production of goods and services
valued at current prices
Real GDP Correct Answer-The production of goods and services valued
at constant prices
GDP Deflator Correct Answer-A measure of the price level calculated as
the ratio of nominal GDP to real GDP times 100
Consumer Price Index (CPI) Correct Answer-A measure of the overall
cost of the goods and services bought by a typical consumer.
The cost of a basket of goods and services purchased by a typical
consumer in the current year divided by the cost of the same basket of
goods in the base year, times 100.
Inflation Rate Correct Answer-The percentage change in the price index
from the preceding period
Producer Price Index Correct Answer-A measure of the cost of a basket
of goods and services bought by firms
Indexation Correct Answer-The automatic correction by law or contract
of a dollar amount for the effects of inflation
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