In 1998, the country of Derf's imports equaled its exports. Derf's GDP was $500 million, its consumer expenditure was $385 million, and its investment was $14 million. Derf's government purchases were ______________.

$500 million
$899 million
$101 million
zero

Last year in the country of More, government purchases of goods and services were $20 million and the government had a budget deficit of $3 million. Consumption expenditure was $7 million, and there was dissaving of $2 million. GDP in More was ___________________.

$32 million
$28 million
$26 million
$22 million

The country of Erdf has zero net exports. Government purchases of goods and services are $15 million and the government has a budget surplus of $5 million. Investment is $5 million. Saving in Derf is _______________.

$25 million
$10 million
$15 million
zero

If the government has a budget deficit and saving is equal to investment, then ________________.

aggregate expenditure does not equal aggregate income
imports equal exports
imports are less than exports
imports exceed exports

In the country of Darrowby, net domestic income at factor cost is $1.5 million. Gross domestic product is $2.0 million, and depreciation is $0.5 million. Indirect taxes less subsidies ___________________.

cannot be calculated
are $1 million
are $0.5 million
are zero

A typical family in Dref buys only oranges and pens. In the base year, it bought 400 oranges at $1.00 each and 800 pens at $0.75 each. This year, a family buys 500 oranges at $1.50 each and 850 pens at $1.00 each. The CPI this year is __________.

62.5
1.40
160
140

The planet of Sunev produces only two goods: lambs and vases. In the base year, it produced 50 lambs and 30 vases, and last year, it produced 60 lambs and 35 vases. Since the base year, the prices of these goods have been $4 a lamb and $5 a vase. Last year, nominal GDP was _____________ and real GDP was ___________.

$350; $415
$350; $350
$415; $350
$415; $415

Which of the following statements is true?

The CPI is less than the GDP deflator.
The CPI and the GDP deflator are always equal.
The CPI is greater than the GDP deflator.
The CPI and the GDP deflator are not always equal.

In Tomato Land, farmers sell tomatoes to factories for $100. Factories sell ketchup to supermarkets for $150. Supermarkets sell ketchup to consumers for $300.

The value added by the supermarkets is $50.
The value added by the factories is $150.
The total value added is $550.
The value added by the supermarkets is $150.

In the country of Kemper, real GDP in 1997 was $5 billion and real GDP in 1998 was $6 billion. The economic growth rate in 1998 was ______________ .

$10 billion
2 percent a year
16.7 percent a year
20 percent a year

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