macro95ex2

# In 2002 private saving was 1590 billion investment

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34. In 2002, private saving was \$1590 billion, investment was \$1945 billion, and the current account balance was –\$489 billion. From the uses-of-saving identity, how much was government saving? (a) –\$134 billion (b) –\$844 billion (c) \$844 billion (d) \$134 billion Answer: A Level of difficulty: 2 Section: 2.3 35. In 2002, national saving was \$1456 billion, investment was \$1945 billion, and private saving was \$1590 billion. How much was the current account balance? 36. In the mid-to-late 1980s, the United States had “twin deficits” because both ___________ and ___________ were negative.

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22 Abel/Bernanke • Macroeconomics, Fifth Edition 37. The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon. 2003 2004 Good Quantity Price Quantity Price Milk 500 \$2 900 \$3 Butter 2000 \$1 3000 \$2 Between 2003 and 2004, nominal GDP grew by 38. The value of real GDP in the current year equals (a) the value of current-year output in prices of the base year. (b) the value of current-year output in prices of the current year. (c) the value of base-year output in prices of the base year. (d) the value of base-year output in prices of the current year. Answer: A Level of difficulty: 1 Section: 2.4 39. The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon. 2003 2004 Good Quantity Price Quantity Price Milk 500 \$2 900 \$3 Butter 2000 \$1 3000 \$2 Between 2003 and 2004, the percent change in real GDP (based on 2003 as a base year) was
Chapter 2 The Measurement and Structure of the National Economy 23 40. The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon. 2003 2004 Good Quantity Price Quantity Price Milk 500 \$2 900 \$3 Butter 2000 \$1 3000 \$2 Between 2003 and 2004, the GDP deflator (based on 2003 as a base year) rose

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• Inflation, gross domestic product, Fifth Edition, Difficulty

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