Exam 12: GDP: Measuring Total Production and Income

Table 12-14 -Refer to Table 12-14.Consider the data above for a simple economy: Using 2005 as the base year,calculate nominal GDP,real GDP,and the GDP deflator for 2011.Show your work.

Table 12-5 Consider the table above showing three stages of production of an automobile. -Refer to Table 12-5.The value added by the automobile dealer equals

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?

Table 12-4 -Refer to Table 12-4.Consider the data above (in billions of dollars)for an economy: Gross domestic product (in billions of dollars)for this economy equals

If prices in the economy rise,then

In May 2009,the U.S.auto industry experienced a 34 percent decline in sales compared to May 2008.The automobile industry was experiencing the effects of

Which of the following statements about the underground economy is true?

If nominal GDP is $5 trillion and real GDP is $4 trillion,the GDP deflator is

A sharp increase in the divorce rate increases the number of lawyers hired to determine divorce settlements.This will

The purchase of a new automobile is included in

The value of what a U.S.-owned McDonald's produces in South Korea is included in the U.S.________ and the South Korean ________.

National income equals gross national product minus

The purchase by a foreign government of an airplane produced in the United States is included in U.S.

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.

Table 12-1 -Refer to Table 12-1.Suppose that a simple economy produces only four goods and services: sweatshirts,dental examinations,coffee drinks,and coffee beans.Assume all of the coffee beans are used in the production of the coffee drinks.Using the information in the above table,nominal GDP for this simple economy equals

Table 12-15 The components of national income for an economy are represented in Table 12-15 above.All values are in billions of dollars. -Refer to Table 12-15.What is the level of disposable personal income for this economy?

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?

Table 12-13 -Refer to Table 12-13.Consider the following data for a simple economy: Calculate nominal GDP and real GDP for 2011,using 2009 as the base year.Show your work.

The GDP deflator is the

Real GDP per capita is calculated by dividing the value of real GDP for a country by the country's adult population.