Exam 19: Gdp: Measuring Total Production and Income

Table 19-5 Consider the table above showing three stages of production of an automobile. -Refer to Table 19-5. The value of each automobile in gross domestic product equals

Real GDP is GDP in a given year

The ________ is a measure of the price level and is calculated by dividing ________ by ________ and multiplying by 100.

If China decides to enact laws to clean up the environment, what would be the effect on GDP?

The measure of production that values production using current prices is called

Which of the following is a true statement about real and nominal GDP?

The Bureau of Economic Analysis divides it's statistics on GDP into four major categories. List the categories of expenditures and define each.

Which of the following would result in GDP for an economy equal to $10 trillion?

Explain the difference between gross domestic product and gross national product. Give an example of each.

A transfer payment is a payment by the government to an individual

U.S. gross national product is defined as

The GDP deflator is a measure of the price level which is calculated as nominal GDP divided by real GDP and multiplied by 100.

If a country passes a labor law limiting the number of hours of work per week, GDP would ________ and leisure would ________.

Investment spending includes spending on

The circular flow of income shows that GDP can be measured as the sum of wages, interest, rent, and profits received by households or total expenditures on goods and services by households, firms, government, and the rest of the world.

In the circular flow diagram, the value of all the income in the economy is greater than the value of goods and services produced in the economy.

Macroeconomics, as opposed to microeconomics, includes the study of what determines the

The drawback to calculating real GDP using base-year prices is that

If real GDP increases we know for sure that

National income is equal to