Exam 5: Gdp: a Measure of Total Production and Income

The base year is 2008.A country only produces MP3 players.The price of an MP3 player in 2008 was $100.The price of an MP3 player was $90 in 2009.The quantity of MP3 players produced in 2008 was 10,000 units and in 2009 was 10,500 units.Nominal GDP in 2009 equals

A recession conventionally is defined as a decrease in

Which adjustment(s) must be made to convert net domestic product to GDP? i. add indirect taxes ii. subtract subsidies iii. add depreciation

A recession runs from the

Nominal GDP can change

Production by Honda, a Japanese firm, in the United States is included in ________ GDP and production by Nike Corporation, a U.S.firm, in Vietnam is included in ________ GDP.

Janet calculated the GDP growth rates for France between 2010 and 2011.Using 2010 prices for both years, GDP increased 5 percent.Using 2011 prices for both years, GDP increased 1 percent.Hence the chained-price method will calculate that between these years, real GDP increased by

Wobet is a small country that produces only steak and potatoes. Steaks have a price of $10 each and potatoes have a price of $1 each. Suppose that Wobet produces 10 steaks and 20 potatoes in 2010.Using ________, Wobet has GDP equal to ________.

The Great Moderation describes the period

Which of the following is included in U.S.GDP? I. the rental value of homes owned by U.S.citizens. Ii. the production of Suburban SUVs by GM in its plant in Mexico. Iii. Tickets sold by U2 for concerts held in the United States.

Explain why the purchase and sale of used goods and of financial assets are not included in the calculation of GDP even though transactions in these items amount to billions of dollars daily.

One reason the total sum of the income categories does not equal GDP is that

In calculating GDP, we must

Total expenditure equals total income

Data for 2010 Data for 2011 Item Quantity Price Quantity Price Hot dogs 4 \ 1.50 6 \ 1.75 Pepsi 2 \ 1.00 3 \ 1.25 -The table gives data on the production and prices in a small economy.Use 2010 as the base period. a. What does nominal GDP equal in 2010? b. What does real GDP equal in 2010? c. What does nominal GDP equal in 2011? d. Using the chained-price method, what does real GDP equal in 2011?

The value of leisure time is

GDP is equal to the ________ value of all the final goods and services produced within a country in a given period of time.

Item Billions of dollars Consumption expenditure 7,500 Investment 1,300 Government expenditure on goods and services 1,400 Net exports of goods and services -200 -Based on the data in the table above, what does GDP equal?

Real GDP measures the value of goods and services produced in a given year valued using

If you sell your textbook to your friend this year, does the sale count in this year's GDP?