ecn101_m1_ans

# ecn101_m1_ans - Part 1 Multiple Choices 1 Variables that a...

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Part 1: Multiple Choices 1. Variables that a model tries to explain are called: a. endogenous. b. exogenous. c. market clearing. d. fixed. Answer: a 2. Assume that a rancher sells a McDonald’s quarter - pound of meat for \$1 and that McDonald’s sells you a hamburger made from that meat for \$2. In this case, the value included in GDP should be: 3. Assume that a firm buys all the parts that it puts into an automobile for \$10,000, pays its workers \$10,000 to fabricate the automobile, and sells the automobile for \$22,000. In this case, the value added by the automobile company is : 4. An example of an imputed value in the GDP is the : 5. An increase in the price of goods bought by firms and the government will show up in: a. the CPI but not in the GDP deflator. b. the GDP deflator but not in the CPI. c. both the CPI and the GDP deflator. d. neither the CPI nor the GDP deflator. Answer: b

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