Exam 26: Measuring Domestic Output and National Income

Economy A: gross investment equals depreciation Economy B: depreciation exceeds gross investment Economy C: gross investment exceeds depreciation Refer to the information.Positive net investment is occurring in:

Which of the following is the smallest dollar amount in the United States?

If real GDP rises and the GDP price index has increased:

Assume an economy that makes only one product and that year 3 is the base year.Output and price data for a five-year period are as follows.Answer the question on the basis of these data. 1 2 3 4 5 Units of 3 4 6 7 8 Price Per \ 3 4 5 7 8 Refer to the data.The nominal GDP for year 4 is:

The amount of after-tax income received by households is measured by:

Answer the question on the basis of the following data.All figures are in billions of dollars. Personal Taxes \4 0 Social Security Contributions 15 Taxes on Production and Imports 20 Corporate Income Taxes 40 Transfer Payments 22 U.S. Exports 24 Undistributed Corporate Profits 35 Government Purchases 90 Gross Private Domestic Investment 75 U.S. Imports 22 Personal Consumption Expenditures 250 Consumption of Fixed Capital 25 Net Foreign Factor Income 10 Statistical Discrepancy 0 Refer to the data.PI is:

Assume an economy that makes only one product and that year 3 is the base year.Output and price data for a five-year period are as follows.Answer the question on the basis of these data. 1 2 3 4 5 Units of 3 4 6 7 8 Price Per \ 3 4 5 7 8 Refer to the data.If year 3 is chosen as the base year,the price index for year 1 is:

Answer the question on the basis of the following data.All figures are in billions of dollars. Personal Taxes \4 0 Social Security Contributions 15 Taxes on Production and Imports 20 Corporate Income Taxes 40 Transfer Payments 22 U.S. Exports 24 Undistributed Corporate Profits 35 Government Purchases 90 Gross Private Domestic Investment 75 U.S. Imports 22 Personal Consumption Expenditures 250 Consumption of Fixed Capital 25 Net Foreign Factor Income 10 Statistical Discrepancy 0 Refer to the data.DI is:

If there are no statistical discrepancies,NDP (net domestic product)is:

The agency responsible for compiling the National Income Product Accounts for the U.S.economy is the:

If real disposable income fell during a particular year,we can conclude that:

Answer the question on the basis of the following data.All figures are in billions of dollars. Personal Taxes \4 0 Social Security Contributions 15 Taxes on Production and Imports 20 Corporate Income Taxes 40 Transfer Payments 22 U.S. Exports 24 Undistributed Corporate Profits 35 Government Purchases 90 Gross Private Domestic Investment 75 U.S. Imports 22 Personal Consumption Expenditures 250 Consumption of Fixed Capital 25 Net Foreign Factor Income 10 Statistical Discrepancy 0 Refer to the data.NDP is:

Suppose nominal GDP was $360 billion in 1990 and $450 billion in 2000.The appropriate price index (1985 = 100)was 120 in 1990 and 125 in 2000.Between 1990 and 2000 real GDP:

Answer the question on the basis of the following information: 1 2 3 4 5 Nominal \ 550 560 576 586 604 Price 140 135 120 117 108 In the economy above,real GDP for year 3 is:

GDP is the:

Assume an economy that is producing only one product.Output and price data for a three-year period are as follows.Answer the question on the basis of these data. 1 2 3 Units of 20 25 30 Price Per \ 4 4 6 Refer to the data.The nominal GDP for year 3 is:

Answer the question on the basis of the following information: Only three goods are produced in an economy in the following amounts: A = 10,B = 30,C = 5.The current year per unit prices of these three goods are A = $2,B = $3,and C = $1. (Advanced analysis)Refer to the information.If the per unit prices of the three goods were each $1 in a base year used to construct a GDP price index,then real GDP in the current year is:

Use the following table for a hypothetical single-product economy. 1 2 3 4 Units of 10 12 15 20 Price of Bagel \ 10 20 30 40 Price Index 100 200 300 400 Refer to the data.Real GDP in year 3 is:

Gross private domestic investment exceeds depreciation in an economy that experiences expanding production capacity.

Assume an economy that is producing only one product.Output and price data for a three-year period are as follows.Answer the question on the basis of these data. 1 2 3 Units of 20 25 30 Price Per \ 4 4 6 Refer to the data.If year 2 is chosen as the base year,the price index for year 1 is: