Exam 23: Measuring a Nations Income

In the economy of Ukzten in 2010,consumption was $2000,exports were $800,GDP was $4800,government purchases were $840,and investment was $1400.What were Ukzten's imports in 2010?

GDP can measure either the total income of everyone in the economy or the total expenditure on the economy's output of goods and services,but GDP cannot measure both at the same time.

Unemployment compensation is

Which of the following items is counted as part of government purchases?

For monitoring fluctuations in the national economy,which measure of income is best?

Tim mows the yard for his neighbors.He spends $1 on gas and charges them $20 for each lawn he mows.What's the total contribution to GDP each time Tim mows a yard?

In 2009,GDP per person in the United States was almost

Which of the following is a way to compute GDP?

Which of the following items is included in U.S.GDP?

Macroeconomic statistics include GDP,the inflation rate,the unemployment rate,retail sales,and the trade deficit.

If a firm produces a good and then adds it to its inventory rather than selling it,for the purposes of GDP accounting the firm is considered to have "purchased" the good so it will count as part of that period's investment expenditures.

Which of the following subcomponents of GDP can be either positive or negative?

Suppose an economy produces only cranberries and maple syrup.In 2010,50 units of cranberries are sold at $20 per unit and 100 units of maple syrup are sold at $8 per unit.In 2009,the base year,the price of cranberries was $10 per unit and the price of maple syrup was $15 per unit.For 2010,

Table 10-4 The country of Caspir produces only cereal and milk.Quantities and prices of these goods for the last several years are shown below.The base year is 2008. Prices and Quantities -Refer to Table 10-4.In 2011,this country's

Disposable personal income is the income that

The term real GDP refers to a country's actual GDP as opposed to its estimated GDP.

A U.S.firm produces nail guns in the first quarter of 2010 and adds them to its inventory.In the second quarter of 2010 the firm sells the nail guns to a U.S.construction company.In which quarter(s)does(do)these transactions raise investment?

Suppose that twenty-five years ago a country had nominal GDP of $1,000,a GDP deflator of 200,and a population of 100.Today it has nominal GDP of $3,000,a GDP deflator of 400,and population of 150.What happened to the real GDP per person?

The city of Ann Arbor Michigan buys a police car manufactured in Germany.In the GDP accounts this transaction is included in

Nominal GDP uses constant base-year prices to place a value on the economy's production of goods and services,while real GDP uses current prices to place a value on the economy's production of goods and services.