Test Bank For Principles of Macroeconomics International 9th Edition by Michael Melvin
Chapter 16 Economic Growth
MULTIPLE CHOICE
1. Economic growth is measured as:
a.
the quarterly percentage change in nominal GDP.
b.
total output per year divided by the inflation rate.
c.
total nominal GDP at the end of each year.
d.
the percentage change in population growth per year.
e.
the annual percentage change in real GDP.
ANS: E DIF: Easy REF: 1.a OBJ: ch. 16, 1
NAT: Analytic | Measuring the Economy TOP: Defining Economic Growth
MSC: Knowledge
2. If real GDP for Mexico was 19.8 trillion pesos at the end of 1999 and 21.3 trillion pesos at the end of 2000, then Mexico’s economy grew at an annual rate of _____.
a.
-0.015%
b.
4.4 %
c.
4.2%
d.
7.57%
e.
3.8%
ANS: D DIF: Moderate REF: 1.a OBJ: ch. 16, 1
NAT: Reflective Thinking | Measuring the Economy TOP: Defining Economic Growth
MSC: Application
3. What is the annual rate of economic growth in Japan if real GDP at the beginning of the year is 11.9 trillion yen and real GDP at the end of the year is 11.1 trillion yen?
a.
0.65%
b.
-6.7%
c.
1.9%
d.
0.008%
e.
-6.25%
ANS: B DIF: Moderate REF: 1.a OBJ: ch. 16, 1
NAT: Reflective Thinking | Measuring the Economy TOP: Defining Economic Growth
MSC: Application
4. If real GDP in Korea amounted to 448.3 trillion wons in 1999 and 473.7 trillion wons in 2000, compute the growth experienced by this country in 2000?
a.
5.4%
b.
5.66%
c.
2.54%
d.
-1.05%
e.
-9.4%
ANS: B DIF: Moderate REF: 1.a OBJ: ch. 16, 1
NAT: Reflective Thinking | Measuring the Economy TOP: Defining Economic Growth
MSC: Application
5. What will be a nation’s real GDP after seven years if the average annual growth rate is 5 percent and initial real output is $10 billion?
a.
$14.07 billion
b.
$14.57 billion
c.
$11.27 billion
d.
$9.74 billion
e.
$13.44 billion
ANS: A DIF: Challenging REF: 1.a.1 OBJ: ch. 16, 1
NAT: Reflective Thinking | Measuring the Economy TOP: Defining Economic Growth
MSC: Application
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