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

In the United States, between 1959 and 2009, there has been i) a consistent , non-changing growth rate of potential GDP per person Ii) an increase in the standard of living based on real GDP per person Iii) fluctuations in real GDP per person around potential GDP per person

Which of the following is included in Germany's GDP? I.BMWs produced in a German owned factory in South Carolina Ii. the value of the stocks sold on the German stock exchange, the Frankfurt Stock Exchange Iii. china produced by the English owned Wedgewood Company at a factory in Berlin, Germany

Which of the following is NOT included in measured U.S.GDP?

A business cycle has two turning points, which are the

Are sales and purchases of used goods counted as part of GDP? Why or why not?

If we use GDP to measure our standard of living, then our procedure is

Can nominal GDP ever be less than real GDP?

The U.S.economy is experiencing rising output, rising employment, rising incomes and falling unemployment.These conditions best describe a business cycle ________.

The measurement of GDP handles underground production by

Which of the following is NOT part of the income used in the income approach to measuring GDP?

-Based on the figure above, in which quarter or quarters did an expansion occur?

Everything else the same, if government expenditure increases by $400 billion and imports increase by $400 billion, then GDP

Over the business cycle,

If real GDP is greater than nominal GDP for a particular year, then

If the purchase of used goods was to be incorporated into measuring GDP using the expenditure approach, then

Use the idea of the circular flow diagram to explain why the value of production equals total income equals total expenditure.

In the business cycle, what immediately precedes the time when real GDP is falling?

When total output, income, employment, and trade decline for 6 to 12 months, the economy is in what part of the business cycle?

The abbreviation "GDP" stands for

Consumption expenditure includes spending