Exam 10: Measuring a Nations Income

In the economy of Ukzten in 2010, consumption was $5000, exports were $100, government purchases were $900, imports were $200, and investment was $1000. What was Ukzten's GDP in 2010?

Martin, a U.S. citizen, travels to Mexico and buys a newly manufactured motorcycle made there. His purchase is included in

If real GDP is higher in one country than in another, then we can be sure that the standard of living is higher in the country with the higher real GDP.

Net exports equal

If total spending rises from one year to the next, then

In 2009, the level of U.S. real GDP was close to four times its 1965 level.

Transfer payments are

Rachel babysits for her sister for no pay. When she babysits for someone else she charges $8 an hour. When is Rachel's babysitting included in GDP?

Additions to inventory subtract from GDP, and when the goods in inventory are sold, the reductions in inventory add to GDP.

The GDP deflator is the ratio of

The inflation rate in year 2 equals

Which of the following statements about recessions is true?

Which of the following items is counted as part of government purchases?

Table 10-2 The table below contains data for the country of Crete for the year 2010. Total income \ 5731 Household purchases of durable goods \ 1108 Household purchases of nondurable goods \ 702 Household purchases of non-education services \ 203 Household purchases of education services \ 302 Household purchases of new housing \ 816 Purchases of capital equipment \ 333 Inventory changes \ 75 Purchases of new structures \ 267 Depreciation \ 401 Local government spending on goods and services \ 236 State government spending on goods and services \ 419 Federal government spending on goods and services \ 1182 Transfer payments \ 707 Foreign purchases of domestically produced goods \ 217 Domestic purchases of foreign goods \ 129 -Refer to Table 10-2. What were Crete's net exports in 2010?

The basic tools of supply and demand are

Table 10-1 The table below contains data for country A for the year 2010. Household purchases of durable goods \ 1293 Household purchases of nondurable goods \ 1717 Household purchases of services \ 301 Household purchases of new housing \ 704 Purchases of capital equipment \ 310 Inventory changes \ 374 Purchases of new structures \ 611 Depreciation \ 117 Salaries of government workers \ 1422 Government expenditures on public works \ 553 Transfer payments \ 777 Foreign purchases of domestically produced goods \ 88 Domestic purchases of foreign goods \ 120 -Refer to Table 10-1. What was country A's GDP in 2010?

The GDP deflator for years subsequent to the base year measures the change in

The term real GDP refers to a country's actual GDP as opposed to its estimated GDP.

Which of the following transactions would be included in GDP for 2010?

If real GDP doubles and the GDP deflator doubles, then nominal GDP