Exam 19: GDP: Measuring Total Production and Income

Table 19-5 Consider the table above showing three stages of production of an automobile. -Refer to Table 19-5.The value added by the automobile dealer equals

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

The purchase by a household in China of a CD produced in the United States is included in U.S.

Disposable personal income equals personal income

Which of the following is not a true statement about the impact of World War II on the U.S.economy?

Real GDP is GDP in a given year

The purchase of a new automobile is included in

National income equals gross national product minus

People complain that inflation increases the cost of goods and services and therefore reduces their purchasing power.If inflation and income grow at the same rate,is this complaint valid? Explain carefully.

Which of the following statements is true?

During a business cycle expansion,total production ________ and total employment ________.

Suppose that in 2011,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 2011 is

The nominal GDP of the U.S.in 2010 was approximately $14.6 trillion.This means that

Which of the following could cause nominal GDP to increase,but real GDP to decrease?

Table 19-5 Consider the table above showing three stages of production of an automobile. -Refer to Table 19-5.The value of each automobile in gross domestic product equals

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.

In the United States since the mid-1980s,consumption as a percentage of GDP has

Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so,how?

The GDP deflator in year 2 is 105,using year 1 as the base year.This means that,on average,the cost of goods and services is

In 2011,Kendall Ford,an automobile dealership,spent $20,000 on a new car lift for its repair shop,$2,000 on a new copy machine for its sales division,and $600,000 on Ford Motor company stock.Unsold cars and trucks were valued at $400,000 on January 1,2011 and unsold cars and trucks were valued at $900,000 on December 31,2011.What is Kendall Ford's total investment spending in 2011?