1.True or False:The contribution to output growth of technological progress is estimated by how much of the output growth can be explained by the growth in inputs.

2.

The chain index for GDP and the CPI differ in that the CPI:

a.

excludes price changes from used and imported goods while the chain index includes these price changes.

b.

asks how much a fixed basket of goods costs in the current year as compared to the cost of those same goods in a base year while the chain index takes an average of price changes using base years from neighboring years.

c.

is calculated by the Commerce Department while the chain index is calculated by local newspapers.

d.

is calculated in nominal terms and the chain index is calculated in real terms.

3.

If an economy produced twenty pizzas at $10 each and fifteen liters of cola at $5 each, the total value of these goods and services would be:

a.

$200.

b.

$75.

c.

$275.

d.

$2,750.

"Recession" refers to a period when the economy:

a.

fails to grow for at least six months.

b.

suffers due to political instability.

c.

grows rapidly.

d.

experiences a rise in living standards.

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