Exam 23: Measuring a Nations Income

Even though GDP is not the only thing that affects the quality of life,it is a useful measure because it measures a nation's ability to purchase the inputs that can be used to produce things such as good health and quality education.

International data on GDP and socioeconomic variables

Table 23-3 -Refer to Table 23-3.Using the GDP deflator to measure the average level of prices and using 2006 as the base year,the economy's inflation rate is

Table 23-1. The data pertain to the nation of Simplia for the year 2006. -Refer to Table 23-1.The market value of all final goods and services produced within Simplia in 2006 is

Macroeconomists study

Expenditures by households on education services are included in the consumption component of GDP.

For an economy,in a given time period,income exceeds spending.

Government purchases include spending on goods and services by

A recession is always associated with

Which of the following values would be reflected in U.S.GDP for 2006?

Transfer payments are

Table 23-3 -Refer to Table 23-3.Nominal GDP is

GDP does not make adjustments for leisure time and environmental quality.

Unemployment compensation is

In the United States in 2004,purchases of capital equipment,inventories,and structures amounted to about

For a certain economy in 2005,GDP was $2,000;investment was $400;government purchases were $300;and net exports were $70.It follows that consumption was

In the national income accounts,depreciation is called

Greg,a U.S.citizen,works only in Canada.The value that his labor contributes to U.S.output is

In the country of Mainia,only cranberries and maple syrup are produced.In 2006,50 units of cranberries are sold at $20 per unit,and 100 units of maple syrup are sold at $10 per unit.The price of cranberries was $10 per unit and the price of maple syrup was $15 per unit in 2005,which is the base year.For 2006,

Which of the following statements about the growth of real GDP in the U.S.economy is correct?