Mid Term Quiz 2021 Macro Economics

This study source was downloaded by 100000857300661 from CourseHero.com on 11-23-2022 03:56:10 GMT -06:00https://www.coursehero.com/file/140237947/Mid-Term-Quiz-2021docx/ 1 To compute GDP at current market price, which of the following is excluded? 23/25A: Wages B: Taxes C: ProfitsD: All of the above.E: None of the above.2 GDP is a________ measure of well-being because it______ leisure.A: good; valuesB: bad; does not value C: good; does not value D: bad; valuesE: perfect; does not value3 Countries A and B have the same levels of consumption, investment, and government purchases, but country B sells twice as many exports and buys twice as many imports as country A. Which country must have a larger GDP?A: Country A.B: Country B.C: The GDP of country A must equal the GDP of country B.D: The answer depends on whether country A has positive or negative net exports.E: The answer depends on whether country As imports are greater than its domestic consumption.4 Given AS is unchanged, a rise in inventories will____ aggregate demand and_______ GDP.A: raise; raise B: raise; lower C: lower; lower D: lower; raiseE: raise; not affect5 After its peak of economic activity, the economy will move to______ .A: expansion and then peak.B: expansion and then trough.C: expansion and then