Exam 8: GDP: Measuring Total Production and Income

Table 8-12 -Refer to Table 8-12.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is

A transfer payment is a payment by the government to an individual

Table 8-11 Consider the following data for Tyrovia,a country that produces only two products: guns and butter. -Refer to Table 8-11.Nominal GDP for Tyrovia in 2013 equals

Gross domestic product in the economy is measured by the

Table 8-23 2007 2013 -Refer to Table 8-23.Suppose that a very simple economy produces three goods: pizzas,haircuts,and backpacks.Suppose the quantities produced and their corresponding prices for 2007 and 2013 are shown in the table above.Use the information to compute real GDP in the year 2007 and 2013.Assume that 2007 is the base year.Is output higher in 2013 or 2007? Why?

Nominal GDP will increase

An example of business fixed investment spending is

The U.S.work week has declined from 60 hours in 1890 to 40 hours today.The impact of the decline in working hours

Scott is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products.For his wife's birthday,he designs and creates an intricate birdseye maple jewelry box that takes him 15 hours to complete.By how much and in what direction does GDP change as a result of his efforts?

In periods when prices are falling,on average,

If a German firm produces cars in the United States,that production should count towards

Emily is a writer.She buys pens and paper for $20 and writes a 500-page novel that she sells to a publishing company for $500,000.If the publisher prints 1 million copies that sell for $25 each,what is the contribution to GDP of Emily's novel?

Table 8-20 -Refer to Table 8-20.Given the following information,calculate the rate of increase in the price level from 2012 to 2013.

Using "chain-weighted" prices to calculate real GDP remedies the distortions causes by changes in relative prices over time.

Table 8-19 -Refer to Table 8-19.Given the information above,calculate the GDP deflator in 2013.

If the GDP deflator rises from 185 to 190,what is the rate of inflation between the two years?

Which of the following are not considered part of government purchases?

If income is unequally distributed in an economy,increases in GDP may not raise well-being in an economy.

Which of the following is not directly counted in GDP?

Which of the following headlines would be more closely related to what macroeconomists study than what microeconomists study?