Exam 10: Measuring a Nations Income: Part A

What three types of goods are included in investment spending?

Calculate GDP for a country with investment of $2 trillion,government purchases of $3 trillion,capital depreciation of $1.5 trillion,consumption of $10 trillion,exports of $3.4 trillion,and imports of $3.9 trillion.

Identify the largest and smallest components of GDP.

What measure of GDP shows the value of goods and services produced if we valued these good and services at the prices that prevailed in some specific year in the past?

A farmer sells sugar to a candy producer for $150.If the producer uses this sugar to make candy that sells for $200,what is the total contribution to GDP from these transactions?

In 2011 a country had a real GDP of $13.89 trillion and GDP deflator of 110.In 2012 it had a nominal GDP of $17.8 trillion and real GDP of 14.24 trillion.What is the rate of inflation in 2012?

Consumption is $5.5 trillion,investment is $1 trillion,government expenditures are $1.5 trillion,transfer payments are $.5 trillion,exports are $.75 trillion and imports are $1.25 trillion.What is GDP?

Refer to Figure 23-2.Identify the location for markets for factors of production and markets for goods and services.

For the economy as a whole,how does income compare to expenditures? Explain.

Alexandria,a British citizen,owns and manages a fish and chips shop in Washington,D.C. She buys fresh food produced by U.S.workers,pays utilities to a U.S.company,and employs only U.S.citizens.What part,if any,of the restaurant's production is included in U.S.GDP? What part,if any,of the restaurant's production is included in U.S.GNP?

You find that your paycheck for the year is higher this year than last.Does that mean that your real income has increased? Explain carefully.

Define GDP.Remember to be specific about what it includes.

Identify which of the following are included in the government purchases component of GDP. the salary paid to a state court judge unemployment insurance benefits the payment made by the federal government for a jet fighter social security payments a county builds a jail building

GDP is defined as the market value of all final goods and services produced within a country in a given period of time.In spite of this definition,some production is left out of GDP.Explain why some final goods and services are not included.

Nominal GDP is $12 trillion and real GDP is $15 trillion.What is the GDP deflator? Show your work.

U.S.real GDP is substantially higher today than it was 60 years ago.What does this tell us,and what does it not tell us,about the well-being of U.S.residents?

The U.S.buys $500 billion of goods and $250 billion of services from foreign countries.Foreign countries buy $250 billion of goods and $300 billion of services from the U.S.What is net exports?

How frequently is U.S.GDP reported? Is GDP adjusted for seasonality?

Write the formula for calculating a GDP deflator using only nominal and real GDP.

Explain how real GDP differs from nominal GDP.