ASU ECN 211 Exam 2 – 2024 With 100% Correct Answers

Microeconomics - correct answer the study of how individual households and firms make decisions and how they interact with one another in markets Macroeconomics - correct answer the study of the economy as a whole What is the goal of macroeconomics? - correct answer to explain changes that affect many households, firms, and markets simultaneously GDP deflator - correct answer a measure of the price level calculated as the ratio of nominal GDP to real GDP times 100 GDP deflator formula - correct answer GDP deflator = (Nominal GPD / Real GDP) * 100 What is GDP? - correct 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 - correct answer GDP = consumption + investment + gov purchases + net exports What is the specific interval of time usually when measuring GDP? - correct answer a year or quarter (3 months) How does the government usually present GDP? - correct answer "at an annual rate" i.e. the amo