Exam 6: Introduction to Macroeconomics and Gross Domestic Product

Which is the largest component of U.S. gross domestic product GDP)?

Suppose a particular model of smartphone contains $150 worth of raw materials and requires $175 worth of labor to produce. One day, one of these phones sells for $400. The seller would have been willing to sell it for as little as $375, whereas the buyer would have been willing to pay as much as $425. Which dollar amount would be used to calculate this transaction's contribution to gross domestic product GDP)?

The expansion phase of a business cycle is best described as the time

Consider the following data, which shows the quantities and prices of two goods produced in the economy, to answer the next three questions: Quantity produced Price Cell phones 5 million \ 100/ cell phone Pizza 25 million \ 10/ pizza -The market value of pizza is

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next questions. Assume that the base year is 2015. Good 2015 Price 2015 Quantity 2016 Price 2016 Quantity A \ 2 250 \ 3 200 B \ 3 300 \ 2 400 C \ 4 400 \ 5 500 -What was the inflation rate between the two years?

Nominal gross domestic product GDP) increases if

A doctor receives $50,000 per month from her patients and their insurance companies) as payment for her services. Each month she buys medical supplies for $10,000 and she pays a lab $15,000 for analyzing slides. The total contribution to gross domestic product GDP) this month is

Nominal gross domestic product GDP) increased from $15.62 trillion to $16.09 trillion, and the price level increased from 120.0 to 122.4. Rounding to the nearest second decimal, the growth rate of real GDP was approximately

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next questions. Assume that the base year is 2015. Good 2015 Price 2015 Quantity 2016 Price 2016 Quantity A \ 2 250 \ 3 200 B \ 3 300 \ 2 400 C \ 4 400 \ 5 500 -Economic growth is best measured by changes in

Consider the following data, where gross domestic product (GDP) values are measured in millions of dollars, to answer the questions: Year Nominal GDP Real GDP GDP Deflator 2009 \ 500 100 2010 \ 551.2 106 2011 \ 600.6 \ 546 2012 \ 600.6 120 -What is the value of the gross domestic product GDP) deflator in 2011? Round to the nearest decimal.

The consumption category of gross domestic product GDP) includes all purchases of final goods and services by households EXCEPT

Goods that firms repackage with other goods for sale at a later stage are

Gross domestic product GDP) is defined as the total of all final goods and services produced _______ during a fixed period of time.

A shortcoming of nominal gross domestic product GDP) is that

If gross domestic product GDP) is supposed to measure quantity of goods produced, why is GDP given as an amount of money rather than a quantity of goods produced?

Gross domestic product GDP) is most often measured by the

Real gross domestic product GDP) is GDP measured in_______ prices.

A computer company builds a new factory. This is included in the _______ category of gross domestic product GDP).

When people in the United States buy clothing made in China, this counts as

Explain the difference between gross domestic product GDP) and the older concept of gross national product GNP).