Exam 23: Measuring a Nations Income

Consider two items that might be included in GDP: (1)The estimated rental value of owner-occupied housing;and (2)purchases of newly-constructed homes.How are these two items accounted for when GDP is calculated?

For an economy as a whole,

After the terrorist attacks on September 11,2001,governments within the United States raised expenditures to increase security at airports.These purchases of goods and services are

In 2004 in the U.S.,the four components of GDP matched up with their relative importance as follows:

Real GDP is the production of final goods and services valued at

In the equation Y = C + I + G + NX,

Because every transaction has a buyer and a seller,

The GDP deflator is the ratio of

In order to include many different goods and services in an aggregate measure,GDP is computed using,primarily,

Suppose GDP consists of wheat and rice.In 2005,20 bushels of wheat are sold at $4 per bushel,and 10 bushels of rice are sold at $2 per bushel.In 2004,the price of wheat was $2 per bushel and the price of rice was $1 per bushel.Using 2004 as the base year,it follows that,for 2005,

Being able to measure the behavior of the economy with statistics such as GDP

Anna,a U.S.citizen,works only in Germany.The value she adds to production in Germany is included

If net exports is a negative number for a particular year,then

A transfer payment is a payment made by

A country reported a nominal GDP of $115 billion in 2006 and $125 billion in 2005;it reported a GDP deflator of 85 in 2006 and a deflator of 100 in 2005.Between 2005 and 2006,