Exam 5: Measuring a Nations Income

Many things that society values,such as good health,high-quality education,enjoyable recreation opportunities,and desirable moral attributes of the population,are NOT measured as part of GDP.According to most economists,why is GDP a useful measure of society's well-being?

In order to include many different products in an aggregate measure,how is GDP computed?

According to economists,why is it useful to measure the behaviour of the economy with statistics such as GDP?

If a small country has current nominal GDP of $20 billion and the GDP deflator is 125,what is its real GDP?

According to the simple circular-flow model,what do firms buy from households?

An Italian company opens a pasta company in Ottawa.Where are the profits from this pasta company included?

How are goods that go into inventory and are not sold during the current period treated in GDP terms?

If the GDP deflator is 400 and nominal GDP is $2 trillion billion,what is real GDP?

What does the simple circular-flow diagram illustrate?

What is included in GDP?

A country reported a nominal GDP of $115 billion in 2015 and $125 billion in 2014 and reported a GDP deflator of 85 in 2015 and 100 in 2014.What happened to real output and prices from 2014 to 2015?

How should Robert's contributions to GDP be calculated?

Alcestis and her family are the only inhabitants of Elafonisos,a small island off the coast of Greece.She only produces fresh fish,which she can sell to clients from nearby islands for 2 euros per kilo.Last year,Alcestis caught 800 kg of fish; she consumed 50 kg and sold the remaining 750 kg for €1500.She used €1000 to buy food and clothing,and she used the remaining €500 for a new fishing boat that she bought from another island.Calculate the following for Elafonisos: ​ a)GDP,as the value of production b)Consumption c)Investment d)Exports e)Imports f)Net Exports g)GDP,as total expenditure

Suppose an apartment complex converts to a condominium (i.e.,the renters become owners of their apartments).Suppose the value of the condominium owners' housing services is now the same as their former rent.What happens to GDP?

How is NNP calculated?

How is the value of housing services included in GDP?

Table 5-2 -Refer to the Table 5-2.What is the GNP for this economy?

What would be the cause of a 2% increase in nominal GDP?

Which of the following is included in the investment component of GDP?

Which of the following is a macroeconomic issue?