Exam 11: Measuring a Nations Production and Income

Recall the Application about the time it took to recover from the most recent recession to answer the following question(s). -According to this Application, real GDP only grew by ________ percent from the end of the recession in 2009 through 2014.

What is the chain-weighted price index for GDP in the base year?

If real GDP was 100 in 2015 and 104.4 in 2016, the growth rate of real GDP between 2015 and 2016 was

When differences between nominal GDP and real GDP result due to price changes and nothing else is compared, an index is created called the

The GDP equation is

The majority of spending in the category of government purchases comes from

Recall the Application about the size of Wal-Mart to answer the following question(s). During 2014, Wal-Mart's sales were approximately $473 billion, or roughly 2.7 percent of U.S. GDP, and its cost of sales was $358 billion. -In listing both the amount and cost of Wal-Mart's 2014 sales, this Application is addressing the economic concept of

In the circular flow model, firms sell the services of factors of production to households.

From 1948 to 2010, the United States has experienced only 4 recessions.

Suppose someone told you that the chain-weighted price index for GDP in a country was 135. Why does this fact not convey much information to you?

When considering imports and exports, economists include the ________ as a component of the GDP.

Give some examples of transactions in markets which are not regulated or controlled.

Macroeconomics

Exports ________ GDP and imports ________ GDP.

Nominal GDP measures the value of goods and services using current-year prices.

Recall the Application about the size of Wal-Mart to answer the following question(s). During 2014, Wal-Mart's sales were approximately $473 billion, or roughly 2.7 percent of U.S. GDP, and its cost of sales was $358 billion. -According to this Application, what was the approximate value of Wal-Mart's value added in 2014?

Explain why only final goods are included in GDP.

Wages paid to teachers, police personnel, and postal workers are not transfer payments because they are payments for services and not simply "transfers" of money.

Prior to 1996 the government measured real GDP using 1987 prices. What would the rapid growth in computers and the fall in computer prices tend to do to the difference between true GDP growth and measured real GDP growth, relative to using a later year?

The value of all final goods and services produced during a given time period measures a nation's