Exam 6: Measuring Total Output and Income

GDP may be calculated by totaling either the market values of all final goods and services or the income earned during production of those final goods and services.

In reality, the GDP-GDI gap for the United States

Figure 6-2 shows a spending flow model where both consumption and investment goods are being produced. Use the figure to answer questions . Figure 6-2 -Refer to Figure 6-2. Washington State purchases four airplanes from Boeing. This expenditure falls under the:

Real GDP per capita measures

If flour is sold to a bread producing firm, then the value of that flour is not included in the GDP.

To estimate the value of U.S. GDP from U.S. GNP, we must:

The gross domestic product of a nation:

Double counting in GDP accounting:

Which of the following is an example of an intermediate good or service?

Disposable personal income excludes transfer payments received by households.

Figure 6-2 shows a spending flow model where both consumption and investment goods are being produced. Use the figure to answer questions . Figure 6-2 -Refer to Figure 6-2. A New York restaurant purchases 1,000 cases of wine from a winery in France. This transaction is recorded as part of:

What is the difference between real GDP and nominal GDP?

Explain why transfer payments are not included in GDP.

Which of the following is the best example of a final good or service?

Figure 6-1 shows the circular flow model where only consumption goods are being produced. Use the figure to answer questions . Figure 6-1 -Refer to Figure 6-1. Which two flows represent your purchase of groceries from Safeway?

Nominal GDP uses current market prices and real GDP measures GDP using base-year prices.

Which of the following is an example of a stock variable?

GDP can be found by adding the final value of all goods and services produced or by totaling all factor incomes (including indirect business taxes and depreciation) for the period.

Personal income equals:

Government purchases include: