Exam 8: Gdp: Measuring Total Production and Income

Consumption spending is $4.5 billion,gross private domestic investment is $3 billion,and government expenditures are $2 billion.If GDP is $14 billion,which of the following could be true regarding exports and imports in the economy?

When Ford increases the production of cars in Australia,which of the following occurs?

A transfer payment is a payment by the government to an individual

If nominal GDP rises we can say that

An increase in national income could by caused by which of the following?

The GDP deflator is a measure of the price level which is calculated as nominal GDP divided by real GDP and multiplied by 100.

Disposable personal income is defined as

Caroline is an artist.She purchases canvas,paints,brushes,and accessories for $75.She sells one of her original paintings to an art gallery for $1,500,even though an art lover would pay $4,500 for that painting.How much value does Caroline add?

Table 19-5 A very simple economy produces three goods: movies, burgers, and bikes. The quantities produced and their corresponding prices for 2006 and 2011 are shown in the table above. -Refer to Table 19-5.What is nominal GDP in 2011?

Which of the following would increase disposable personal income?

The circular flow of income shows that GDP can be measured as the sum of wages,interest,rent,and profits received by households or total expenditures on goods and services by households,firms,government,and the rest of the world.

Table 19-6 A very simple economy produces three goods: cameras, legal services, and books. The quantities produced and their corresponding prices for 2008 and 2011 are shown in the table above. -Refer to Table 19-6.What is the GDP deflator in 2008 if 2011 is the base year?

The values of real GDP and real GNP are almost the same in countries where a significant fraction of domestic production takes place in foreign-owned firms.

The table below describes the value added in the production of a gallon of gasoline by each stage of production.(The values are hypothetical.) Table 19-3 a.What is the value added by each stage of production? b.What is the total value added? For simplicity,you can ignore the cost of the inputs for oil drilling.

Which of the following would result in GDP for an economy equal to $10 trillion?

The GDP deflator is equal to

When measuring GDP,new automobile sales are counted as consumption when the automobiles are purchased by ________ and as investment when they are purchased by ________.

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

Which of the following is counted in GDP?

Table 19-7 -Refer to Table 19-7.Given the information above,calculate the GDP deflator in 2010.