Exam 7: Macroeconomic Measurements: GDP and Real GDP

Suppose there are five goods in the economy,A-E.The current-year quantity of each is 10A,20B,30C,40D,and 50E.Current-year prices are $1 for each unit of A,$2 for each unit of B,$3 for each unit of C,$4 for each unit of D,and $5 for each unit of E.Base-year prices are $1 for each good.Real GDP in the current year equals _________ and GDP equals _________.

Suppose that net exports are -$300 billion and exports are $500 billion. Imports equals

Net interest is the interest paid out by US households and government minus the interest income they received.

Draw an appropriate diagram to represent the business cycle and label each of the five phases.Provide a brief description of each phase.

Exhibit 7-1 -Refer to Exhibit 7-1.Which of the following summations represents GDP using the expenditure approach?

Compensation of employees is the largest spending component of GDP.

Exhibit 7-3 -Refer to Exhibit 7-3. Investment is equal to

Is it possible for a country with a relatively large GDP to have a relatively small per-capita GDP?

Which of the following would definitely not be included in the measurement of GDP?

Gross Domestic Product (GDP)is the total market value of all

Net domestic product (NDP)is the total value of new goods available in the economy after worn out capital goods have been replaced.

Exhibit 7-1 -Refer to Exhibit 7-1.What is the value of national income?

In the United States,which is the largest dollar figure?

Exhibit 7-5 -Refer to Exhibit 7-5. What was Country Z's economic growth rate between year 2 and year 3?

Which of the following would not be included in the measurement of GDP?

The standard definition of "recession" is

For economists trying to determine peoples' preferences,observing how people act is more important than what people say in surveys.

Gross Domestic Product is computed by using

In 1950,the country with the highest per capita GDP was

Exhibit 7-1 -Refer to Exhibit 7-1.What is the value of personal income?