In 2002 private saving was 1590 billion investment

This preview shows page 8 - 11 out of 17 pages.

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.
Image of page 8

Subscribe to view the full document.

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
Image of page 9
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
Image of page 10

Subscribe to view the full document.

Image of page 11
You've reached the end of this preview.
  • Spring '11
  • carlitos
  • Inflation, gross domestic product, Fifth Edition, Difficulty

{[ 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