a MODULE QUIZ 16.1 To best evoluete your performance, enter your quiz answers online. 1. The least appropriate approach to calculating a country's gross domestic product (GDP)is summing for a given time period the: 'A. value of all purchases and sales that took place within the country. 8. amount spent on final goods and services produced within the country. Income generated in producing al inal goods and services produced within the country. 2. Gross domestic product dees not include the value of: A transfer payments. B. government services. © owner-occupied housing. 3. When GDP is calculated by the sumof.valueadded method, what isthe value of @ manufactured product in GDP? A. The sum of the products value at each stage of production and distribution 8. The sum of the increases in the product's value at each stage of production and distribution. . The product's retall price less the value added at each stage of production, and distribution. 4, Real GDP is best described as the value of, ‘A. current output measured at current prices. 8. current output measured at base-year prices. © base-yeer output measured et current prices. 5. The GOP defiator's calculated as 100 times the ratio of: ‘A nominal GOP to real GDP. 8. base year prices to current year prices. ©. current year nominal GOP to base year nominal GDP. 66. Which ofthe fellowing measures of income is the sum of wages and benefits, pretax profits, interest income, owners’ income from unincorporated businesses, rent, and taxes net of subsidies? A Personal income. B. National income. C. Personal disposable income. 7. Which of the following statements most accurately describes personal income? Personal income: ‘A. Includes unearned income from governments, such as transfer payments, B, measures the amount of after-tax income that households can spend or save. Includes indirect business taxes, corporate income taxes, and retained. earnings. 8. Ifa government budget deficit increases, net exports must: ‘A. Increase, or the excess of private saving over private investment must decrease. B. decrease, or the excess of private saving over private investment must increase. C. decrease, or the excess of private saving over private investment must decrease.a MODULE QUIZ 16.2 To best evaluate your performance, enter your quiz answers online. 1. The S curve illustrates which of the following relationships? ‘A. Direc relationship between aggregate income and the price leve. B. Inverse relationship between agaregate income and the price level. Inverse relationship berween aggregate income and the real interest rate. 2. An economy's potential output is best represented by: ‘A. longun aggregete supply. B. short-run aggregate supp. long.run aggregate demand, 2. Astronger domestic currency relative to foreign currencies is most Ikely to result ina! ‘A. shift in the aggregate supply curve toward lower supply. 8, shift in the aggregate demand curve toward lower demand, CC movernentalong the aggregate demand curve towards higher prices. ‘4, Which of the following factors would be leas ilelyto shift the ageregate demand curve? ‘A. The price level increases. 8, The federal deficit expands. C Expected infation decreases.MODULE QUIZ 16.3 To best evaluate your performance, enter your quiz answers online. 1. Starting from short-run equilibrium, if aggregate demand is increasing faster than long-run aggregate supply: A the price level islikely to increese. 'B. downward pressure on wages should ensue. supply will increase to meet the additional demand. 2. Ashortrun macroeconomic equilibrium in which output must decrease to restore long-run equilibrium is most accurately characterized as: ‘A. stagflation. B. arecessionary gap, Can inflationary gap. 3. Which of the following combinations of changesin aggregate demand and aggregate supply is most likely to result in decreasing prices? Aggregete demand: ‘A. decreases while aggregate supply increases. B. decreases while agaregate supply decreases. increases while aggregate supply decreases. 4, Labor productivity is most likely to increase as.a result of a(nl: ‘A. increase in physica capital. B. decrease in net immigration. C. increase in the labor force participation rave. 5. Long-term sustainable growth of an economy is least kel to result from growth in: A. the supply of labor. 8. capital per unit of labor. © outputper unit of labor. 6. Ina production function model of economic output, total factor productivity represents the output growth that can be accounted for by: A. capital growth but not labor growth, B. neither labor growth nor capital growth, C the combined effects of labor growth and capital growth, 7. Ina developed economy, the primary source of growth in potential GDP is A. capital investment B. labor supply growth. C technology advances.