Exam 21: Measuring National Output and National Income

If GNP is $500 billion, receipts of factor income from the rest of the world are $15 billion, and payments of factor income to the rest of the world are $5 billion, then GDP is

The costs of pollution are subtracted from the value of final sales before calculating GDP.

If receipts of factor income from the rest of the world exceed payments of factor income to the rest of the world, then

The GDP deflator in year 2 is 110 and the GDP deflator in year 3 is 118. The rate of inflation between years 2 and 3 is

When GDP is measured in "current prices" it is known as the

Depreciation is

If the economy grows at 10 percent from year 1 to year 2 and real GDP is 300 in year 1, what will real GDP be in year 2?

Production in the illegal or underground economy is not reflected in GDP.

Related to the Economics in Practice on p. 427: The value of the fees charged by eBay to sellers who use eBay is

Gross investment minus net investment is

The total market value of all final goods and services produced within a given period by factors of production located within a country is

The interest on loans paid by businesses is called

Which of the following is counted in the GNP of the United States?

The total income of the country is

Consumers can spend their entire personal income.

If in a year there is a positive inventory investment, then final sales

Related to the Economics in Practice on p. 432: ________ is responsible for producing and maintaining the National Income and Product Accounts (NIPAs).

As long as an item has never been sold, its value is counted in GDP for the year in which it is finally sold.

If the personal saving rate is 20% and personal saving is $20 billion, the value of personal disposable income is

Refer to the information provided in Table 21.2 below to answer the question(s) that follow. Table 21.2 -Refer to Table 21.2. The value for gross private domestic investment in billions of dollars is