SOLUTIONS (1) - workplace It also does not include tasks...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECO2013 (Calhoun) Solutions 1. b. The sale of a used car would not be considered part of GDP unless it was refurbished and sold for a higher price than what was paid for it. 2. b. The sale of new homes is always considered in GDP calculations. Realtor fees would be included in GDP for the sale of used homes had they been used. 3. c. Important: d. is not correct because GNP includes everything in GDP produced by U.S. citizens as well as production by U.S. citizens in foreign countries. 4. a. Remember the investment component of GDP includes business investment in new machinery, equipment and buildings as well as the purchase of new homes. 5. d. Nominal GDP = Real GDP + Inflation so we don’t know if real GDP rose, pr ices increased or a combination of both. 6. c. The GDP deflator is a broader measure and is therefore preferred when measuring inflation. 7. a. and d. GDP does not take into account how many hours are worked or the conditions of the
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: workplace. It also does not include tasks done within a household by the family living in the household. Chores would be included if a maid was hired, though. 8. b. and c. 9. c. 10. b. and d. 11. b. The only factor that changes in the two equations is the number of people employed. The number of people employed increases. 12. c. 13. b. and c. 14. d. Rewrite the equation as nominal = real +inflation. If nominal increased by 3% and inflation is positive, then real has to increase by less than 3%. 15. a., b. and d. Remember c. is a factor that causes the demand curve for a particular good to slope downward, not the aggregate demand curve. 16. e. 17. c. Macroeconomics Test 2 Review (Calhoun) – Fall 2010 2 18. b. Nominal = real + inflation 19. a. and c. 20. a. and d. If the dollar appreciates, then it will cost us less to buy Chinese goods. This will lead to an increase in imports to the U.S. from China. 21. d. 22. d. 23. e. 24. d....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern