ECN 211 ASU EXAM 2 WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS| CURRENTLY TESTING VERSION |
ALREADY GRADED A+|NEWEST|EXPERT
VERIFIED FOR GUARANTEED PASS 2026/2027
Microeconomics
the study of how individual households and firms make decisions and how they interact
with one another in markets
Macroeconomics
the study of the economy as a whole
What is the goal of macroeconomics?
to explain changes that affect many households, firms, and markets simultaneously
GDP deflator
a measure of the price level calculated as the ratio of nominal GDP to real GDP times
100
GDP deflator formula
GDP deflator = (Nominal GPD / Real GDP) * 100
What is GDP?
GROSS DOMESTIC PRODUCT
the market value of all final goods and services produced within a country in a given
period of time
GDP formula
GDP = consumption + investment + gov purchases + net exports
1|Page
, What is the specific interval of time usually when measuring GDP?
a year or quarter (3 months)
How does the government usually present GDP?
"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?
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?
market prices
market prices
measure the amount people are willing to pay for different goods
(i.e. if the price of an apple is twice the price of an orange, then the apple contributes
twice as much to GDP as does an orange)
TRUE/FALSE:
Vegetables you grow in your garden are part of GDP
FALSE
*GDP excludes most items produced and sold illicitly, such as illegal drugs, as well as
most items that are produces and consumed at home (buying vegetables at the store vs
growing own garden)
2|Page
QUESTIONS AND VERIFIED DETAILED
ANSWERS| CURRENTLY TESTING VERSION |
ALREADY GRADED A+|NEWEST|EXPERT
VERIFIED FOR GUARANTEED PASS 2026/2027
Microeconomics
the study of how individual households and firms make decisions and how they interact
with one another in markets
Macroeconomics
the study of the economy as a whole
What is the goal of macroeconomics?
to explain changes that affect many households, firms, and markets simultaneously
GDP deflator
a measure of the price level calculated as the ratio of nominal GDP to real GDP times
100
GDP deflator formula
GDP deflator = (Nominal GPD / Real GDP) * 100
What is GDP?
GROSS DOMESTIC PRODUCT
the market value of all final goods and services produced within a country in a given
period of time
GDP formula
GDP = consumption + investment + gov purchases + net exports
1|Page
, What is the specific interval of time usually when measuring GDP?
a year or quarter (3 months)
How does the government usually present GDP?
"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?
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?
market prices
market prices
measure the amount people are willing to pay for different goods
(i.e. if the price of an apple is twice the price of an orange, then the apple contributes
twice as much to GDP as does an orange)
TRUE/FALSE:
Vegetables you grow in your garden are part of GDP
FALSE
*GDP excludes most items produced and sold illicitly, such as illegal drugs, as well as
most items that are produces and consumed at home (buying vegetables at the store vs
growing own garden)
2|Page
