ECN 211 ASU ACTUAL EXAM SCRIPT 2026
QUESTIONS AND SOLUTIONS GRADED A+
◉Macroeconomics. Answer: the study of the economy as a whole
◉What is the goal of macroeconomics?. Answer: to explain changes
that affect many households, firms, and markets simultaneously
◉GDP deflator. Answer: a measure of the price level calculated as
the ratio of nominal GDP to real GDP times 100
◉GDP deflator formula. Answer: GDP deflator = (Nominal GPD /
Real GDP) * 100
◉What is GDP?. Answer: GROSS DOMESTIC PRODUCT
the market value of all final goods and services produced within a
country in a given period of time
◉GDP formula. Answer: GDP = consumption + investment + gov
purchases + net exports
, ◉What is the specific interval of time usually when measuring GDP?.
Answer: a year or quarter (3 months)
◉How does the government usually present GDP?. Answer: "at an
annual rate"
i.e. the amount of income and expenditure during the quarter (3
moths) * 4 = figure recorded for quarterly GDP
◉What two things does GDP measure at once?. Answer: 1. the total
income of everyone in the economy
2. the total expenditure on the economy's output of goods and
services
*For an economy as a whole, income must = expenditure
◉How does GDP measure the value of economic activity?. Answer:
market prices
◉market prices. Answer: measure the amount people are willing to
pay for different goods
QUESTIONS AND SOLUTIONS GRADED A+
◉Macroeconomics. Answer: the study of the economy as a whole
◉What is the goal of macroeconomics?. Answer: to explain changes
that affect many households, firms, and markets simultaneously
◉GDP deflator. Answer: a measure of the price level calculated as
the ratio of nominal GDP to real GDP times 100
◉GDP deflator formula. Answer: GDP deflator = (Nominal GPD /
Real GDP) * 100
◉What is GDP?. Answer: GROSS DOMESTIC PRODUCT
the market value of all final goods and services produced within a
country in a given period of time
◉GDP formula. Answer: GDP = consumption + investment + gov
purchases + net exports
, ◉What is the specific interval of time usually when measuring GDP?.
Answer: a year or quarter (3 months)
◉How does the government usually present GDP?. Answer: "at an
annual rate"
i.e. the amount of income and expenditure during the quarter (3
moths) * 4 = figure recorded for quarterly GDP
◉What two things does GDP measure at once?. Answer: 1. the total
income of everyone in the economy
2. the total expenditure on the economy's output of goods and
services
*For an economy as a whole, income must = expenditure
◉How does GDP measure the value of economic activity?. Answer:
market prices
◉market prices. Answer: measure the amount people are willing to
pay for different goods
