Exam 25: Measuring and Describing the Aggregate Economy

Refer to the table shown. In trillims of dallars Consurnotion 4.2 Irvestment 1.2 Government Purchases 1.5 Depreciation 0.4 GDP 6.6 What are the economy's net exports?

If nominal GDP grew at 4% per year over the past four years,can we be sure that everyone is better off now? Explain your answer.

Nominal GDP can never be equal to real GDP.

If a firm sold $700 worth of goods that cost $800 to produce:

The income approach to measuring GDP:

Why will calculating GDP using the expenditure approach give you the same value as using the income approach? What types of data would be needed for each approach?

Suppose the value of your home increases from $100,000 to $125,000. If you continue to live in your home, the increase in its value:

A price index in its base year:

How can GDP be calculated without "double counting"?

Aggregate income is a measure of:

Payment by firms to landlords for commercial space is counted in aggregate accounting as:

Using purchasing power parity instead of exchange rates to calculate output will most likely:

Bhutan's government publishes a "gross national happiness" measure that embraces everything from protecting national resources to promoting a strong national culture and ensuring democratic government. This approach to measuring progress is similar to the approach that the text calls:

When someone stops mowing his own lawn and hires a lawn service to mow it for him, what happens to GDP? (Assume that the lawn service reports its income to the IRS. )

GDP is a good measure of:

If real income has risen from $5 trillion to $5.3 trillion and the price level went up by 12%,by what dollar amount has nominal income risen?

Assuming food and beverages make up about 15 percent of total expenditures and food and beverage prices rise by 10 percent while the other components of the price index remain constant, approximately by how much will the price index rise?

If you know that a meal costing $40 in the United States would cost $2 in Bangladesh and this is representative of the relative prices of most goods, you also know that:

When news reports state that inflation has increased, they could be referring to a change in the GDP deflator.

If the percent change in nominal GDP is 5 percent and inflation is 3 percent, the percent change in real GDP is: