#1) Macroeconomists study decisions of economy wide phenomena. (T/F)
#2)The basic tools of supply and demand are central to microeconomic analysis, but seldom used in macroeconomic analysis (T/F)
#3) Many things that society values, such as good health, high-quality education, enjoyable recreation opportunities, and desirable moral attributes of the population, are not measured as part of GDP.
Therefore, GDP is not a useful measure of society's welfare. (T/F)
#4) In a certain economy in 2005, households spent $1,200 on goods and services; purchases of capital equipment, inventories, and structures amounted to $250; government spent $350 on goods and services; and the value of imports exceeded the value of exports by $50. ( or NX =-50) It follows that 2005 GDP for this economy was:
ans: $1750 C =1200 I =250 G = 350 NX =-50
#5) Write the equation that includes the four components of GDP and identify each component.
Y = C + I + G + NX
Y = GDP
G= government purchases
NX= net exports