曼昆宏观经济学英语课后题答案

1、The circular flow diagram describes all transactions between households and firms in a 0 / 1 Gross domestic product includes most items produced and sold illicitly.0 / 1 Net national product is the total income of a nation0 / 1 Disposable personal incomeThe circular flow diagram describes all transa

2、ctions between households and firms in a 0 / 1 Gross domestic product includes most items produced and sold illicitly.0 / 1 Net national product is the total income of a nation0 / 1 Disposable personal income is the income that households and unincorporated 0 / 1 The purchase of new houses by househ

3、olds is included in the calculation of personal 0 / 1 When GDP falls,0 / 1 Income equals expenditure because0 / 1 If a province makes the production and sale of illicit drugs legal, then GDPs residents minus losses from business have True/FalseIndicate whether the statement is true or false.?1.?simp

4、le economy and shows the equality of expenditures and income.ANSWER:? TPOINTS:?2.?ANSWER:? FPOINTS:?3.?depreciation.ANSWER:? TPOINTS:?4.?left after satisfying all their obligations to the government. It equals personal income minus personal taxes and certain non-tax payments to government.ANSWER:? T

5、POINTS:?5.?consumption expenditures of GDP.ANSWER:? FPOINTS:?Multiple ChoiceIdentify the choice that best completes the statement or answers the question.?1.?a. income and expenditure must both fall.b. income and expenditure can both rise.c. income must fall, but expenditure may rise or fall.d. expe

6、nditure must fall, but income may rise or fall.ANSWER:? APOINTS:?2.?a. firms always pay out all their revenue as income to someone.b. each time a sale is made, there is a buyer and a seller.c. households own the factors of production used to generate incomes.d. All of the above are correct.ANSWER:?

7、BPOINTS:?3.?a. must increase.b. must decrease.0 / 1 When a government provides subsidies to 0 / 1 When a government provides subsidies to encourage growth of small businesses, the subsidies 0 / 1 Diesel fuel is0 / 1 Gross domestic productin a given period0 / 1 Macroeconomics is that branch of econom

8、ics that studies0 / 1 Suppose that nominal GDP is $6,000 billion and real GDP is $3,000. What is the GDP price d. may increase or decrease.ANSWER:? APOINTS:?4.?woulda. be included in GDP because they are invested by businesses.b. be included in GDP because they are a form of government spending.c. n

9、ot be included in GDP because they are transfer payments.d. may or may not be included in GDP, depending on how the funds are used.ANSWER:? CPOINTS:?5.?a. always considered a final good.b. counted as an intermediate good if a company uses it to provide transportation services.c. counted as a final g

10、ood if a farmer uses it to run a tractor to grow crops.d. Both b and c are correct.ANSWER:? BPOINTS:?6.?a. is the market value of all final goods and services produced within a country in a given period (usually a year)b. is the income in the hands of individuals after deducting income taxes; income

11、 available to households to spend and savec. is the value of goods and services purchased by all levels of government federal, provincial, and locald. is the market value of all final goods and services produced by permanent residents of a nation in a given time periodANSWER:? APOINTS:?7.?a. the con

12、ditions of individual marketsb. the influence of governments on individual marketsc. economy-wide phenomenad. only the private sector of the economyANSWER:? CPOINTS:?8.?deflator?a. 125b. 150c. 200d. 250ANSWER:? C0 / 1 The purchase of final goods and services by households is called0 / 1 0 / 1 0 / 1

13、0 / 1 0 / 1 0 / 1 The purchase of final goods and services by households is called0 / 1 0 / 1 0 / 1 0 / 1 0 / 1 0 / 1 ?9.?a. investmentb. public sector expenditurec. consumptiond. net exportsANSWER:? CPOINTS:?10Investment is the purchase of capital equipment, inventories, and.?a. structuresb. non-du

14、rable goodsc. depreciationd. import investmentANSWER:? APOINTS:?11Transfer payments.?a. are included in GDP because they are forms of incomeb. are included in GDP because goods and services have been produced in the transferc. are NOT included in the GDP because goods and services have not been prod

15、uced in the transferd. are included in GDP because they represent the production of transfers of goods and services to foreign countriesANSWER:? CPOINTS:?12Which of the following would be considered consumption expenditure?.?a. The Smiths buy a home built in 1990.b. The federal government pays the s

16、alary of a captain in the Armed Forces.c. The Hostlers buy a new car that was manufactured in Germany.d. The government buys food for its armed forces.ANSWER:? CPOINTS:?13The method that measures GDP in relationship to the size of the population is called.?a. GNPb. worker GDPc. GDP per persond. capi

17、tal GDPANSWER:? CPOINTS:?14The components of GDP are.?a. C + I + Gb. NX + G + Cc. C + G + NXd. C + I + G + NXANSWER:? DPOINTS:?15Suppose nominal GDP is $7700 and the GDP deflator is 110. Real GDP is0 / 1 What are the components of gross domestic product (GDP)?The components of GDP are: (1) consumpti

18、on spending by households on goods the exception of purchases of provincial, (exports) - / 1 Differentiate between gross domestic product (GDP) and gross national product (GNP).GDP is the value of all final goods and services produced within a country income earned by a nation s permanent from GDP b

19、y including - / 1 Differentiate between real GDP and nominal GDP.Nominal GDP is the value of all final goods and services produced within a and real GDP is 0 / 1 What are the components of gross domestic product (GDP)?The components of GDP are: (1) consumption spending by households on goods the exc

20、eption of purchases of provincial, (exports) - / 1 Differentiate between gross domestic product (GDP) and gross national product (GNP).GDP is the value of all final goods and services produced within a country income earned by a nation s permanent from GDP by including - / 1 Differentiate between re

21、al GDP and nominal GDP.Nominal GDP is the value of all final goods and services produced within a and real GDP is the GDP valued - / 1 Explain why GDP is not considered a perfect measure of well- being?GDP is not considered a perfect measure of well-being because some of the time, the quality - / 1

22、How do economists measure economic growth?Economists measure economic growth as the percentage only changes new housing; (2) Investment and federal levels governments; minus spending on foreign goods and services of the environment, change in real GDP from the distribution of income, and b. $7000c.

23、$847,000d. $8470ANSWER:? BPOINTS:?Short Answer?1.?RESPONSE:?ANSWER:?and services, with spending on capital equipment, inventories, and structures, including household purchases of new housing; (3) government purchases or spending on goods and services by the local, and (4) net exports which is spend

24、ing on domestically produced goods and services by foreigners by domestic resident (imports).POINTS:?2.?RESPONSE:?ANSWER:?in a given year; while GNP is the total residents or nationals (that is, Canadians). GNP differs income that citizens of the nation (Canada) earned aboard, and excluding income t

25、hat foreigners earn in the particular country . in Canada).POINTS:?3.?RESPONSE:?ANSWER:?country in a year and valued at current prices; at constant base year prices.? Real GDP is not affected by changes in the level of prices, so it reflects only changes in the amounts being produced.POINTS:?4.?RESP

26、ONSE:?ANSWER:?factors that contribute to a good life are omitted.? These would include: leisure the production of goods and services that did not pas through the market (for example, housework done by the homemaker, and volunteer work)POINTS:?5.?RESPONSE:?ANSWER:?one period to another. This is becau

27、se changes in real GDP reflect - / 1 The GDP deflator reflects the prices of goods and services bought by consumers ,?and the 0 / 1 The consumer price index compares the price of a fixed basket of goods and services to the 0 / 1 Indexation refers to the automatic - / 1 The GDP deflator reflects the

28、prices of goods and services bought by consumers ,?and the 0 / 1 The consumer price index compares the price of a fixed basket of goods and services to the 0 / 1 Indexation refers to the automatic correction 0 / 1 Long term contracts between firms and unions will sometimes include partial or complet

29、e allowance 0 / 1 The core inflation rate is the consumer price index with the exclusion of the most volatile 0 / 1 In the CPI, goods and services are weighted according towhether the items are necessities or luxuries.how much of each item is produced in the domestic economy.how much is spent on the

30、m in the national income accounts.0 / 1 By not taking into account the possibility of consumer substitution, the CPIoverstates the cost of living.neither overstates nor understates the cost of living.doesnt accurately reflect the cost of living, but it is unclear if it overstates 0 / 1 of a dollar a

31、mount for the effects of inflation POINTS:?CHAPTER 24: MEASURING THE COST OF LIVINGTrue/FalseIndicate whether the statement is true or false.?1.?consumer price index reflects the price of all final goods and services produced domestically.ANSWER:?FPOINTS:?2.?price of the basket in the base year. On

32、the other hand, the GDP deflator compares the price of currently produced goods and services to the price of the same goods and services in the base years.ANSWER:?TPOINTS:?3.?by law or contract.ANSWER:?TPOINTS:?4.?indexation of the wage to the consumer price index. This is called a cost-of-living cl

33、ause.ANSWER:?TPOINTS:?5.?components such as energy and food.ANSWER:?TPOINTS:?Multiple ChoiceIdentify the choice that best completes the statement or answers the question.?1.?a. how much a typical consumer buys of each item.b.c.d.ANSWER:?APOINTS:?2.?a. understates the standard of living.b.c.d.or unde

34、rstates the cost of living.ANSWER:?BPOINTS:?3.If the prices of Brazilian-made shoes imported into Canada increases, thenboth Canadas GDP deflator and itneither Canada s GDP deflator nor itCanadas GDP deflator will increase but Canadas consumer price index will increase, but its GDP deflator won0 / 1

35、 If increases in the prices of Canadian car insurance causes the both Canadas GDP deflator and itneither Canada s GDP deflator nor itCanadas GDP deflator will increase but Canadas consumer price index will increase, but its GDP deflator won0 / 1 If increases in the prices of Canadian car insurance c

36、auses the CPI to increase by 3 percent, more than 3 percent.3 percent.less than 3 percent.All of the above are correct.0 / 1 The real interest rate tells youhow quickly the purchasing power of your savings account will grow.the size of your savings account.the purchasing power of your savings accoun

37、t.0 / 1 Inflation refers toa large increase in food and gasoline pricesa situation in which the economys overall price level is risingan increase in the purchasing power of the dollar0 / 1 If nominal interest rates increase from 8 percent to 10 percent while inflation increases the real interest rat

38、e falls from 5 percent to the real interest rate rises from the real interest rate falls from 8 percent to 12 percentthe real interest rate rises from 8 percent to 12 percent0 / 1 If the nominal rate of interest is 10 percent and the rate of inflation is 3 percent, what 13 percent7 percent3 percent7

39、 percent0 / 1 The consumer price index:s consumer price index will increase.s consumer price index will increase.its CPI will not increase.t change.2 percent2 percent to 5 percentb.c.d.ANSWER:?DPOINTS:?4.?the GDP deflator will likely increase bya.b.c.d.ANSWER:?CPOINTS:?5.?a. how quickly your savings

40、 account will grow.b.c.d.ANSWER:?BPOINTS:?6.?a. a temporary increase in the price level due to higher tax ratesb.c.d.ANSWER:?CPOINTS:?7.?from 3 percent to 12 percenta.b.c.d.ANSWER:?APOINTS:?8.?is the real rate of interest?a.b.c.d.ANSWER:?BPOINTS:?9.?measures price changes of raw materialsadjusts all

41、 prices of goods and services for five-year periodsmeasures the cost of goods and services bought by a typical consumercannot measure price changes of intangible production such as services0 / 1 zero prices were stable during 1997 percent percent125 percent0 / 1 $51,750$45,000$38,250$30,0000 / 1 ref

42、lected in GDPreflected in the CPIreflected in net national income0 / 1 the introduction of new goods and servicesunmeasured quality changesThe CPI is not based on a fixed basket of goods and services0 / 1 The GDP deflator The GDP deflator is based on a fixed basket of goods and services.The GDP defl

43、ator is subject to substitution bias.0 / 1 is a measure of the cost of a basket of goods and services bought by firmsreflects measures price changes of raw materialsadjusts all prices of goods and services for five-year periodsmeasures the cost of goods and services bought by a typical consumercanno

44、t measure price changes of intangible production such as services0 / 1 zero prices were stable during 1997 percent percent125 percent0 / 1 $51,750$45,000$38,250$30,0000 / 1 reflected in GDPreflected in the CPIreflected in net national income0 / 1 the introduction of new goods and servicesunmeasured

45、quality changesThe CPI is not based on a fixed basket of goods and services0 / 1 The GDP deflator The GDP deflator is based on a fixed basket of goods and services.The GDP deflator is subject to substitution bias.0 / 1 is a measure of the cost of a basket of goods and services bought by firmsreflect

46、s the prices of all domestically produced goods and services.b.c.d.ANSWER:?CPOINTS:?10If the consumer price index (CPI) at the end of 1996 was 125 and the CPI at the end of 1997 .?was 131, then the rate of inflation during 1997 wasa.b.c.d.ANSWER:?BPOINTS:?11Franks nominal income in 1998 is $45,000.

47、Suppose the CPI in 1998 is 150. What is Franks .?real income?a.b.c.d.ANSWER:?DPOINTS:?12A change in the price of imports bought by consumers will be.?a. reflected in the GDP deflatorb.c.d.ANSWER:?CPOINTS:?13All of the following but one are problems associated with the CPI.?a. substitution biasb.c.d.

48、ANSWER:?DPOINTS:?14Which of the following is correct?.?a. The CPI is not based on a fixed basket of goods and services.b.c.d.ANSWER:?BPOINTS:?15The inflation rate.?a.is the absolute change in prices between yearsis the percentage change in the price index from the preceding periodmeasures changes in

49、 incomes from one year to the next0 / 1 What is the consumer price index (CPI)? What are the three major items included in the CPI?The CPI is a measure of the overall cost of the goods and services bought by - / 1 How is the CPI computed?First the basket of goods and using the data on this by the pr

50、ice ofis the absolute change in prices between yearsis the percentage change in the price index from the preceding periodmeasures changes in incomes from one year to the next0 / 1 What is the consumer price index (CPI)? What are the three major items included in the CPI?The CPI is a measure of the o

51、verall cost of the goods and services bought by - / 1 How is the CPI computed?First the basket of goods and using the data on this by the price of the basket in the base - / 1 Differentiate between the nominal rate of interest and the real rate of interest.The nominal interest rate is the interest r

52、ate as usually reported without a for the effects - / 1 What is meant by the inflation rate? If the CPI in 1996 was and in 1995 was , calculate The inflation - / 1 What are the problems associated with using the consumer price index to measure the cost of basket of items, when new products services

53、must prices and quantity. of inflation. rate is the percentage change in the price index from the preceding so theses changes in quantity be determined and also the relative The base year is chosen, The real interest would not rate is the interest c.d.ANSWER:?CPOINTS:?Short Answer?1.?RESPONSE:?ANSWE

54、R:?a typical consumer. The three major items included in the CPI are shelter, transportation and food.POINTS:?2.?RESPONSE:?ANSWER:?importance of the various items to be included in the basket. Then the prices of the various items in the basket are determined. The cost of the basket is then determine

55、d and the index for the base year is computed using the quantities in the basket and the base year prices. The index is calculated by taking the price of the basket in the each year and dividing year. This ratio is then multiplied by 100.POINTS:?3.?RESPONSE:?ANSWER:?correction rate corrected for the

56、 effects of inflation. The real interest rate = nominal interest rate minus the inflation rate.POINTS:?4.?the inflation rate for 1996.RESPONSE:?ANSWER:?period.? The inflation rate for 1996 would be:POINTS:?5.?living?RESPONSE:?ANSWER:? The problems are: (1) Prices do not change proportionately. Consu

57、mers respond by buying less of the goods whose prices have risen by large amounts and by buying more of the goods whose price have risen by less, or even fallen. The index is computed using a fixed be reflected in the basket. This is referred to as the substitution bias. (2) The CPI is developed usi

58、ng a fixed basket of goods and services, CHAPTER 25: If the CTION AND GROWTH- / 1 One way to raise future productivity 0 / 1 Diminishing returns occur when the benefits from an extra unit of output declines as the 0 / 1 CHAPTER 25: If the CTION AND GROWTH- / 1 One way to raise future productivity 0

59、/ 1 Diminishing returns occur when the benefits from an extra unit of output declines as the 0 / 1 Malthusian theory states that an ever-increasing population would continually strain 0 / 1 Productivity growth is measured by real output per worker.0 / 1 The primary reason that living standards are h

60、igher today than they were a century ago 0 / 1 Of the following countries, which grew the slowest over the last 100 years?0 / 1 On average, each year of schooling raises a persons wage in Canada by about0 / 1 standards are higher today than they were a century quality of is to invest less current re