Exam 8: GDP: Measuring Total Production and Income

Table 8-22 -Refer to Table 8-22.Consider the data above for a simple economy: Using 2009 as the base year,calculate nominal GDP,real GDP,and the GDP deflator for 2013.Show your work.

Real GDP is GDP in a given year

Why do we subtract import spending from total expenditures?

In calculating gross domestic product,the Bureau of Economic Analysis uses the sum of the market value of final goods and services produced.This means that the BEA

Suppose that nominal GDP in 2013 was less than real GDP in 2013.Given this information,we know for certain that

Table 8-17 A very simple economy produces three goods: movies,burgers,and bikes.The quantities produced and their corresponding prices for 2006 and 2013 are shown in the table above. -Refer to Table 8-17.What is nominal GDP in 2006?

If the quantity of goods and services produced in the economy decreases,

Table 8-28 -Refer to Table 8-28.Based on the table above,what is national income for this economy?

Table 8-15 -Refer to Table 8-15.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2012 equals

The measure of production that values production using current prices is called

"Household production" refers to

In 2013,Ford Motor Company's sales were rising.These events were caused by

The size of the underground economy would tend to increase if the government of a country

Suppose that in 2013,the national income in the United States was $200 billion,depreciation was $15 billion,personal taxes were $20 billion,and transfer payments were $10 billion.Gross domestic product in 2013 is

Table 8-31 -Refer to Table 8-31.The table above represents hypothetical data from the National Income Accounts for 2013.Use the data to calculate personal income and disposable income.

In the circular flow model,the value of total income for an economy ________ the value of total production.

Over the last 50 years,has the ratio of household production to gross domestic product in the United States increased or decreased? Consider the effect of the increased number of women working outside the home,and the effect of advances in technology in household production such as microwaves,coffee makers,power tools,etc.

Japan experienced periods of deflation - a declining price level - during the 1990s.During a deflationary period,which would be higher: nominal GDP or real GDP? Why? Assume that the base year of choice is prior to the deflationary period.

The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product.

Which of the following is not a durable good?