Exam 25: Measuring and Describing the Aggregate Economy

Nominal GDP can never be equal to real GDP.

If the prices used in two countries are exactly the same, then a comparison of the per capita GDPs of the two countries provides:

If U.S.imports of goods and services exceed exports U.S.:

Comparisons of per capita gross domestic product (GDP) between countries:

A change in business inventories is:

Suppose profits are less than zero.From this it follows that:

The value of intermediate goods is:

While net domestic product (NDP) is theoretically a better measure of economic activity than gross domestic product (GDP), GDP is used more frequently because:

Which of the following is not included in employee compensation?

If an economy is comprised of two goods and the price of one good rises by 5% and the price of the second good rises 3%, a possible rate of inflation for the economy is 5%.

Personal consumption expenditures consist of:

Given the following information, we can infer that aggregate income equals:

If Saudi Arabia has invested substantially more money in foreign countries than foreigners have invested in Saudi Arabia, then we might expect Saudi:

When real wealth increases:

For the purposes of calculating GDP using the expenditure approach, which of the following payments is not included in the government expenditures component?

Payments for loans by households to firms are known in aggregate accounting as:

Conceptually, a country's GDP equals:

Which of the following is not counted in GDP?

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