Exam 7: Measuring Domestic Output and National Income

GDP excludes most nonmarket transactions. Therefore, GDP tends to:

Over a period of time, a nation's GDP increases by 8 percent in constant-price terms, and by 6 percent in current-price terms. Other things being equal, the price level must have changed by about:

(The following national income statistics are in billions of dollars.) Refer to the above data. Disposable income is:

GDP tends to overstate economic well-being because it takes into account:

Which of the following is included in GDP?

Which of the following is not a component of GDP in the expenditures approach?

Nominal GDP has generally risen more rapidly than real GDP since World War II in the United States, suggesting that:

If the price index in year A is 130, this means that:

U.S. gross domestic product (GDP) measures the market value of all goods and services produced by Americans in one year.

Refer to the above table. The base year of the price index given in the table is:

GDP in an economy is $11,050 billion. Consumer expenditures are $7,735 billion, government purchases are $1,989 billion, and gross investment is $1,410 billion. Net exports must be:

The U.S. Customs Service is a main source of data for:

The sale of a used automobile would not be included in GDP of the current year because it is a:

Depreciation is all of the following, except:

Government purchases are the largest component of aggregate expenditures in the United States.

When businesses have to install anti-pollution equipment to clean up their wastes, they are adding to GDP.

Net exports are positive when exports are greater than imports.