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

"When you purchase $1,000 of stock in Microsoft, your purchase is an investment and hence is part of GDP." Is this assertion correct? Explain your answer.

Which of the following describe the United States economy in 2008 and 2009?

What is a business cycle? What are its phases and turning points?

Which of the following expenditure components of GDP can be negative or positive?

When measuring GDP by the income approach, wage income includes i) health-care insurance paid for by the firm for its employees Ii) Social Security contributions made by the firm Iii) wages paid during a worker's vacation time

Is every product produced in the United States included in U.S.gross domestic product?

To measure GDP by using the income approach, we must add all incomes and then ________ depreciation and ________ net taxes less subsidies.

Suppose GDP is $10 billion, consumption expenditure is $7 billion, investment is $2 billion, and government expenditure on goods and services is $2 billion.Net exports of goods and services must be

If you buy a five-year old TV from a friend, the amount you paid for the TV is

U.S.real GDP

If both the production of goods and services increase and prices rise, then the change in nominal GDP

GDP includes the goods and services produced

-Based on the figure above, in which quarter or quarters did a trough occur?

Which of the following would NOT be directly included in the U.S.GDP in 2010?

Because of the circular flows of expenditure and income in the economy, total ________ equals total ________ equals total ________.

When calculating GDP, purchases of used goods are

-Bananaland produces only bananas and sunscreen and the quantities and prices for 2010 and 2011 are given in the table above.The base year is 2010.Nominal GDP in 2011 is equal to

"To calculate GDP, economists begin with total income earned and then subtract total expenditure by the four sectors of the economy." Is the previous sentence true or false? Explain your answer.

What are the categories of total expenditure?

Which of the following is included as investment in GDP? I.cars produced during the year but unsold at the end of the year Ii. new capital equipment produced and purchased during the year Iii. purchases of a company's stocks and bonds