MACROECONO 140 – Gross investment Net exports

MACROECONO 140 – Gross investment Net exports

Subject: Economics    / General Economics
Question

Question 1)

Answer the next question on the basis of the following data. All figures are in billions of dollars.

Gross investment

$ 18

Net exports

2

Residential fixed investment

5

Inventory investment

3

Net investment

13

Consumption (depreciation) of fixed capital is

$5.

$15.

$16.

$13.

Question 2)

Use the following table to answer the next question.

Year

Real GDP

Population

2008

$20,000

200

2009

40,000

400

2010

60,000

400

2011

70,000

500

Real GDP per capita __________ between 2008 and 2009.

decreases

increases

cannot be calculated

remains constant

Question 3)

Use the following table to answer the next question.

Year

Real GDP

Population

2008

$20,000

200

2009

40,000

400

2010

60,000

400

2011

70,000

500

In 2009 real GDP per capita equals

$20,000.

$2,000.

$100.

$1,000.

Question 4)

A nation’s nominal gross domestic product (GDP)?

is always some amount less than C + I + G + NX.

is the dollar value of all final output produced within the borders of the nation during a specific period of time.

is the dollar value of all final output produced by its citizens, regardless of where they are living.

can be found by summing C + I + S + NX.

Question 5)

Use the following table to answer the next question. The base year is 2007.

Year

Hot Dogs

Price Quantity

Baseballs

Price Quantity

Bottles of Beer

Price Quantity

2005

$ 2.00 100

$ 5.00 50

$2.00 100

2006

4.00 100

5.00 100

2.00 150

2007

6.00 100

5.00 100

2.00 200

2008

8.00 150

8.00 200

4.00 200

2009

10.00 200

10.00 200

4.00 250

The Consumer Price Index for the year 2007 is

100.

150.

50.

200.