Exam 23: Measuring a Nations Income

Table 23-2 The following table contains data for country Mindalion for the year 2019. ​ Household purchases of durable goods \ 1,695 Household purchases of nondurable goods \ 1,717 Household purchases of services \ 400 Household purchases of new housing \ 704 Purchases of capital equipment \ 310 Inventory changes \ 399 Purchases of new structures \ 611 Depreciati on \ 117 Salaries of government workers \ 1,422 Government expenditures on public works \ 589 Transfer payments \ 777 Foreign purchases of domestically produced goods \ 88 Domestic purchases of foreign goods \ 140 -Refer to Table 23-2. What was country Mindalion's GDP in 2019?

Write the formula for calculating a country's inflation rate using the GDP deflator.

U.S. GDP excludes the production of most illegal goods.

Daniel, a U.S. citizen, travels to Mexico and buys a newly manufactured motorcycle made there. His purchase is included in

GDP does not directly measure those things that make life worthwhile, but it does measure our ability to obtain many of the inputs into a worthwhile life.

U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell us, and what does it not tell us, about the well-being of U.S. residents?

Which of the following is included in the calculation of GDP?

Java Hut, a U.S. coffee retailer, buys $10 million worth of coffee beans from Colombia. It also pays $5 million for paper cups and utilities, all produced in the U.S. It sells the coffee it produces using the above inputs to U.S. consumers for $50 million. Overall how do these expenditure affect net exports? How do these expenditures effect U.S. consumption?

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

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

Explain the pattern seen between GDP per person and quality of life measures such as life expectancy, literacy, and Internet usage.

If the price of a hat is five times the price of a pair of shoes, then a pair of shoes contributes

Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption?

What three types of goods are included in investment spending?

How frequently is U.S. GDP reported? Is GDP adjusted for seasonality?

Table 23-3 The following table reports nominal and real GDP for the U.S. from 1929 to 1932. ​ Year Nominal GDP (Billions of dollars) Real GDP (Billions of dollars) 1929 103.6 977 1930 91.2 892.8 1931 76.5 834.9 1932 58.7 725.8 -Refer to Table 23-3. If prices had remained constant between 1929 and 1930, Nominal GDP would have decreased

For an economy as a whole, income must exceed expenditure.

Identify the largest and smallest components of GDP.

Consumption is $7 trillion, investment is $1.5 trillion, government expenditures are $2 trillion, government transfer payments are $1 trillion, exports are $1.50 trillion and imports are $1.25 trillion. What is GDP?

If the GDP deflator in 2009 was 150 and the GDP deflator in 2010 was 175, then the inflation rate in 2010 was 25%.