Exam 7: Part B: Measuring the Economys Output

Suppose a nation's nominal GDP was $972 billion in 2017 and the general price index was 90 in 2017.To make the value of GDP in 2017 comparable with the value of GDP in the base year, the value of GDP in 2017 must be:

If real GDP rises and the GDP price index has increased:

In an economy, the value of inventories fell by $50 billion from Year 1 to Year 2.In calculating total investment for Year 2, national income accountants would increase it by $50 billion.

The term "real GDP" refers to:

Following is data for a hypothetical economy.The base year is 2002 (Price index = 100). Refer to the above data.From 2003 to 2006, prices rose by:

Suppose the total market value of all final goods and services produced in a particular country is $600 billion and the total market value of final goods and services sold is $525 billion in 2020.We can conclude that:

An economy is enlarging its stock of capital goods:

The current GDP price index used by Statistics Canada is referred to as the chain-weighted index, because by using both the previous year prices and current prices it links each year to the prior year.

Following is data for a hypothetical economy.The base year is 2002 (Price index = 100). Refer to the above data.From 2005 to 2006, prices rose by approximately:

Net income from farms and unincorporated businesses is defined as:

The following are national income account data for a hypothetical economy in billions of dollars: gross investment ($320); imports ($35); exports ($22); personal consumption expenditures ($2,460); and, government purchases ($470).What is GDP in this economy?