Test Bank for Macroeconomics, 9th Edition by Olivier Blanchard

Test Bank for Macroeconomics, 9th Edition by Olivier Blanchard

Complete Chapters ✅
Macroeconomics, 9e (Blanchard)
Appendix 1: An Introduction to the National Income and Product Accounts

Multiple Choice Questions

1) If GDP exceeds GNP, we know with certainty that ________.
A) a budget deficit exists
B) a trade surplus exists
C) a trade deficit exists
D) receipts of factor income from the rest of the world exceed payments of factor income to the
rest of the world
Answer: D
AACSB: Application of knowledge
Status: 8e question

2) If GDP is less than GNP, we know with certainty that ________.
A) a budget deficit exists
B) a trade surplus exists
C) a trade deficit exists
D) none of these
Answer: D
AACSB: Application of knowledge
Status: 8e question

3) Net national product (NNP) is equal to ________.
A) personal income minus taxes
B) GNP minus consumption of fixed capital
C) GDP plus consumption of fixed capital
D) national income plus consumption of fixed capital
Answer: B
AACSB: Application of knowledge
Status: 8e question

4) Which of the following is not a component of consumption?
A) nondurable goods
B) purchase of a new condominium
C) education expenses
D) none of these
Answer: B
AACSB: Application of knowledge
Status: 8e question




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,5) Changes in business inventories will be positive when ________.
A) production exceeds sales
B) production is less than sales
C) a trade surplus exists
D) a budget surplus exists
Answer: A
AACSB: Application of knowledge
Status: 8e question

6) Suppose exports are greater than imports. Given this information, we know with certainty that
________.
A) a trade surplus exists
B) GNP > GDP
C) GNP < GDP
D) the change in business inventories is positive
Answer: A
AACSB: Application of knowledge
Status: 8e question

7) Which of the following is not included in National Income?
A) indirect taxes
B) wages and salaries
C) net interest
D) rental income of persons
Answer: A
AACSB: Application of knowledge
Status: 8e question

8) Which of the following is included in National Income?
A) indirect taxes
B) consumption of fixed capital
C) proprietors' income
D) all of these
Answer: C
AACSB: Application of knowledge
Status: 8e question

9) Which of the following is not included in investment?
A) the purchase of new equipment by firms
B) nondurable goods
C) the purchase of a new home
D) none of these
Answer: B
AACSB: Application of knowledge
Status: 8e question



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,10) If GDP is more than GNP, we know with certainty that ________.
A) a budget deficit exists
B) a trade surplus exists
C) a trade deficit exists
D) none of these
Answer: D
AACSB: Application of knowledge
Status: 8e question

11) Changes in business inventories will be negative when ________.
A) production exceeds sales
B) production is less than sales
C) a trade surplus exists
D) a budget surplus exists
Answer: B
AACSB: Application of knowledge
Status: 8e question

12) Suppose exports are less than imports. Given this information, we know with certainty that
________.
A) a trade deficit exists
B) GNP > GDP
C) GNP < GDP
D) the change in business inventories is positive
Answer: A
AACSB: Application of knowledge
Status: 8e question




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, Macroeconomics, 9e (Blanchard)
Appendix 2: A Math Refresher

Multiple Choice Questions

1) A linear relation Y=X is represented by ________.
A) the 45 degree line
B) X axis
C) Y axis
D) a ray
Answer: A
AACSB: Analytical thinking
Status: 8e question

2) In the linear consumption function C= c0 + c1YD, which of the following is not correct?
A) c1 is marginal propensity to consume
B) YD is disposable income
C) c1 is the intercept
D) c1 is the slope
Answer: C
AACSB: Analytical thinking
Status: 8e question

3) Which of the following is not correct?
A) GDP grows at a constant rate every year.
B) A recession may lead to a few years of negative GDP growth.
C) The evolution of GDP would be better represented by using a logarithmic scale.
D) The Great Depression was not associated with a permanently lower level of output.
Answer: A
AACSB: Analytical thinking
Status: 8e question

4) In the linear consumption function C= c0 + c1YD, which of the following is correct?
A) c1 is marginal propensity to consume
B) YD is real GDP
C) c1 is the intercept
D) c0 is the slope
Answer: A
AACSB: Analytical thinking
Status: 8e question




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