2023年曼昆宏观经济学英语课后题超详细解析超详细解析答案.pdf

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1、CHAPTER 23:MEASURING A NATIONS INCOME True/False Indicate whether the statement is true or false.1.The circular flow diagram describes all transactions between households and firms in a simple economy and shows the equality of expenditures and income.ANSWER:T POINTS:0/1 2.Gross domestic product incl

2、udes most items produced and sold illicitly.ANSWER:F POINTS:0/1 3.Net national product is the total income of a nations residents minus losses from depreciation.ANSWER:T POINTS:0/1 4.Disposable personal income is the income that households and unincorporated business have left after satisfying all t

3、heir obligations to the government.It equals personal income minus personal taxes and certain non-tax payments to government.ANSWER:T POINTS:0/1 5.The purchase of new houses by households is included in the calculation of personal consumption expenditures of GDP.ANSWER:F POINTS:0/1 Multiple Choice I

4、dentify the choice that best completes the statement or answers the question.1.When GDP falls,a.income and expenditure must both fall.b.income and expenditure can both rise.c.income must fall,but expenditure may rise or fall.d.expenditure must fall,but income may rise or fall.ANSWER:A POINTS:0/1 2.I

5、ncome equals expenditure because a.firms always pay out all their revenue as income to someone.b.each time a sale is made,there is a buyer and a seller.c.households own the factors of production used to generate incomes.d.All of the above are correct.ANSWER:B POINTS:0/1 3.If a province makes the pro

6、duction and sale of illicit drugs legal,then GDP a.must increase.b.must decrease.c.wouldnt change.d.may increase or decrease.ANSWER:A POINTS:0/1 4.When a government provides subsidies to encourage growth of small businesses,the subsidies would a.be included in GDP because they are invested by busine

7、sses.b.be included in GDP because they are a form of government spending.c.not be included in GDP because they are transfer payments.d.may or may not be included in GDP,depending on how the funds are used.ANSWER:C POINTS:0/1 5.Diesel fuel is a.always considered a final good.b.counted as an intermedi

8、ate good if a company uses it to provide transportation services.c.counted as a final good if a farmer uses it to run a tractor to grow crops.d.Both b and c are correct.ANSWER:B POINTS:0/1 6.Gross domestic product a.is the market value of all final goods and services produced within a country in a g

9、iven period(usually a year)b.is the income in the hands of individuals after deducting income taxes;income available to households to spend and save c.is the value of goods and services purchased by all levels of government federal,provincial,and localin a given period d.is the market value of all f

10、inal goods and services produced by permanent residents of a nation in a given time period ANSWER:A POINTS:0/1 7.Macroeconomics is that branch of economics that studies a.the conditions of individual markets b.the influence of governments on individual markets c.economy-wide phenomena d.only the pri

11、vate sector of the economy ANSWER:C POINTS:0/1 8.Suppose that nominal GDP is$6,000 billion and real GDP is$3,000.What is the GDP price deflator?a.125 b.150 c.200 d.250 ANSWER:C POINTS:0/1 9.The purchase of final goods and services by households is called a.investment b.public sector expenditure c.co

12、nsumption exports ANSWER:C POINTS:0/1 10.Investment is the purchase of capital equipment,inventories,and a.structures b.non-durable goods c.depreciation d.import investment ANSWER:A POINTS:0/1 11.Transfer payments a.are included in GDP because they are forms of income b.are included in GDP because g

13、oods and services have been produced in the transfer c.are NOT included in the GDP because goods and services have not been produced in the transfer d.are included in GDP because they represent the production of transfers of goods and services to foreign countries ANSWER:C POINTS:0/1 12.Which of the

14、 following would be considered consumption expenditure?a.The Smiths buy a home built in 1990.b.The federal government pays the salary of a captain in the Armed Forces.c.The Hostlers buy a new car that was manufactured in Germany.d.The government buys food for its armed forces.ANSWER:C POINTS:0/1 13.

15、The method that measures GDP in relationship to the size of the population is called a.GNP b.worker GDP c.GDP per person d.capital GDP ANSWER:C POINTS:0/1 14.The components of GDP are a.C+I+G b.NX+G+C c.C+G+NX d.C+I+G+NX ANSWER:D POINTS:0/1 15.Suppose nominal GDP is$7700 and the GDP deflator is 110.

16、Real GDP is a.$7700 b.$7000 c.$847,000 d.$8470 ANSWER:B POINTS:0/1 Short Answer 1.What are the components of gross domestic product(GDP)?RESPONSE:ANSWER:The components of GDP are:(1)consumption spending by households on goods and services,with the exception of purchases of new housing;(2)Investment

17、spending on capital equipment,inventories,and structures,including household purchases of new housing;(3)government purchases or spending on goods and services by the local,provincial,and federal levels governments;and(4)net exports which is spending on domestically produced goods and services by fo

18、reigners(exports)minus spending on foreign goods and services by domestic resident(imports).POINTS:-/1 2.Differentiate between gross domestic product(GDP)and gross national product(GNP).RESPONSE:ANSWER:GDP is the value of all final goods and services produced within a country in a given year;while G

19、NP is the total income earned by a nations permanent residents or nationals(that is,Canadians).GNP differs from GDP by including income that citizens of the nation(Canada)earned aboard,and excluding income that foreigners earn in the particular country(E.g.in Canada).POINTS:-/1 3.Differentiate betwe

20、en real GDP and nominal GDP.RESPONSE:ANSWER:Nominal GDP is the value of all final goods and services produced within a country in a year and valued at current prices;and real GDP is the GDP valued at constant base year prices.Real GDP is not affected by changes in the level of prices,so it reflects

21、only changes in the amounts being produced.POINTS:-/1 4.Explain why GDP is not considered a perfect measure of well-being?RESPONSE:CHAPTER 24:MEASURING THE COST OF LIVING ANSWER:GDP is not considered a perfect measure of well-being because some of the factors that contribute to a good life are omitt

22、ed.These would include:leisure time,the quality of the environment,the distribution of income,and the production of goods and services that did not pas through the market(for example,housework done by the homemaker,and volunteer work)POINTS:-/1 5.How do economists measure economic growth?RESPONSE:AN

23、SWER:Economists measure economic growth as the percentage change in real GDP from one period to another.This is because changes in real GDP reflect only changes in the amounts being produced.POINTS:-/1 True/False Indicate whether the statement is true or false.1.The GDP deflator reflects the prices

24、of goods and services bought by consumers,and the consumer price index reflects the price of all final goods and services produced domestically.ANSWER:F POINTS:0/1 2.The consumer price index compares the price of a fixed basket of goods and services to the price of the basket in the base year.On the

25、 other hand,the GDP deflator compares the price of currently produced goods and services to the price of the same goods and services in the base years.ANSWER:T POINTS:0/1 3.Indexation refers to the automatic correction of a dollar amount for the effects of inflation by law or contract.ANSWER:T POINT

26、S:0/1 4.Long term contracts between firms and unions will sometimes include partial or complete indexation of the wage to the consumer price index.This is called a cost-of-living allowance clause.ANSWER:T POINTS:0/1 5.The core inflation rate is the consumer price index with the exclusion of the most

27、 volatile components such as energy and food.ANSWER:T POINTS:0/1 Multiple Choice Identify the choice that best completes the statement or answers the question.1.In the CPI,goods and services are weighted according to a.how much a typical consumer buys of each item.b.whether the items are necessities

28、 or luxuries.c.how much of each item is produced in the domestic economy.d.how much is spent on them in the national income accounts.ANSWER:A POINTS:0/1 2.By not taking into account the possibility of consumer substitution,the CPI a.understates the standard of living.b.overstates the cost of living.

29、c.neither overstates nor understates the cost of living.d.doesnt accurately reflect the cost of living,but it is unclear if it overstates or understates the cost of living.ANSWER:B POINTS:0/1 3.If the prices of Brazilian-made shoes imported into Canada increases,then a.both Canadas GDP deflator and

30、its consumer price index will increase.b.neither Canadas GDP deflator nor its consumer price index will increase.c.Canadas GDP deflator will increase but its CPI will not increase.d.Canadas consumer price index will increase,but its GDP deflator wont change.ANSWER:D POINTS:0/1 4.If increases in the

31、prices of Canadian car insurance causes the CPI to increase by 3 percent,the GDP deflator will likely increase by a.more than 3 percent.b.3 percent.c.less than 3 percent.d.All of the above are correct.ANSWER:C POINTS:0/1 5.The real interest rate tells you a.how quickly your savings account will grow

32、.b.how quickly the purchasing power of your savings account will grow.c.the size of your savings account.d.the purchasing power of your savings account.ANSWER:B POINTS:0/1 6.Inflation refers to a.a temporary increase in the price level due to higher tax rates b.a large increase in food and gasoline

33、prices c.a situation in which the economys overall price level is rising d.an increase in the purchasing power of the dollar ANSWER:C POINTS:0/1 7.If nominal interest rates increase from 8 percent to 10 percent while inflation increases from 3 percent to 12 percent a.the real interest rate falls fro

34、m 5 percent to 2 percent b.the real interest rate rises from 2 percent to 5 percent c.the real interest rate falls from 8 percent to 12 percent d.the real interest rate rises from 8 percent to 12 percent ANSWER:A POINTS:0/1 8.If the nominal rate of interest is 10 percent and the rate of inflation is

35、 3 percent,what is the real rate of interest?a.13 percent b.7 percent c.3 percent d.7 percent ANSWER:B POINTS:0/1 9.The consumer price index:a.measures price changes of raw materials b.adjusts all prices of goods and services for five-year periods c.measures the cost of goods and services bought by

36、a typical consumer d.cannot measure price changes of intangible production such as services ANSWER:C POINTS:0/1 10.If the consumer price index(CPI)at the end of 1996 was 125 and the CPI at the end of 1997 was 131,then the rate of inflation during 1997 was a.zero prices were stable during 1997 b.4.8

37、percent c.6.0 percent d.125 percent ANSWER:B POINTS:0/1 11.Franks nominal income in 1998 is$45,000.Suppose the CPI in 1998 is 150.What is Franks real income?a.$51,750 b.$45,000 c.$38,250 d.$30,000 ANSWER:D POINTS:0/1 12.A change in the price of imports bought by consumers will be a.reflected in the

38、GDP deflator b.reflected in GDP c.reflected in the CPI d.reflected in net national income ANSWER:C POINTS:0/1 13.All of the following but one are problems associated with the CPI a.substitution bias b.the introduction of new goods and services c.unmeasured quality changes d.The CPI is not based on a

39、 fixed basket of goods and services ANSWER:D POINTS:0/1 14.Which of the following is correct?a.The CPI is not based on a fixed basket of goods and services.b.The GDP deflator reflects the prices of all domestically produced goods and services.c.The GDP deflator is based on a fixed basket of goods an

40、d services.d.The GDP deflator is subject to substitution bias.ANSWER:B POINTS:0/1 15.The inflation rate a.is a measure of the cost of a basket of goods and services bought by firms b.is the absolute change in prices between years c.is the percentage change in the price index from the preceding perio

41、d d.measures changes in incomes from one year to the next ANSWER:C POINTS:0/1 Short Answer 1.What is the consumer price index(CPI)?What are the three major items included in the CPI?RESPONSE:ANSWER:The CPI is a measure of the overall cost of the goods and services bought by a typical consumer.The th

42、ree major items included in the CPI are shelter,transportation and food.POINTS:-/1 2.How is the CPI computed?RESPONSE:ANSWER:First the basket of goods and services must be determined and also the relative importance of the various items to be included in the basket.Then the prices of the various ite

43、ms in the basket are determined.The cost of the basket is then determined using the data on prices and quantity.The base year is chosen,and the index for the base year is computed using the quantities in the basket and the base year prices.The index is calculated by taking the price of the basket in

44、 the each year and dividing this by the price of the basket in the base year.This ratio is then multiplied by 100.POINTS:-/1 3.Differentiate between the nominal rate of interest and the real rate of interest.RESPONSE:ANSWER:The nominal interest rate is the interest rate as usually reported without a

45、 correction for the effects of inflation.The real interest rate is the interest rate corrected for the effects of inflation.The real interest rate=nominal interest rate minus the inflation rate.POINTS:-/1 4.What is meant by the inflation rate?If the CPI in 1996 was 107.6 and in 1995 was 105.9,calcul

46、ate the inflation rate for 1996.RESPONSE:ANSWER:The inflation rate is the percentage change in the price index from the preceding period.The inflation rate for 1996 would be:POINTS:-/1 5.What are the problems associated with using the consumer price index to measure the cost of living?RESPONSE:ANSWE

47、R:The problems are:(1)Prices do not change proportionately.Consumers respond by buying less of the goods whose prices have risen by large amounts and by buying more of the goods whose price have risen by less,or even fallen.The index is computed using a fixed basket of items,so theses changes in qua

48、ntity would not be reflected in the basket.This is referred to as the substitution bias.(2)The CPI is developed using a fixed basket of goods and services,when new products are introduced during the time period that a particular fixed basket is being used,these new products will not be included in c

49、alculation of the index.(3)The CPI does not measure quality changes.If the quality of a good deteriorates from one year to the next,the value of the dollar falls,even if the price of the good stays the same.Likewise,if the quality of the good increases from one year to the next,the value of a dollar

50、 also rises.Statistics Canada will try to adjust the price of the good to account for the quality change,but it is very difficult to measure quality.POINTS:-/1 CHAPTER 25:PRODUCTION AND GROWTH True/False Indicate whether the statement is true or false.1.One way to raise future productivity is to inv