Exam 4: Measuring Gdp and Economic Growth

The following data describe Mexico?s economy in 2007. Government spending \ 210 billion Investment \ 210 billion Exports \ 272 billion Imports \ 283 billion GDP 1 trillion Population 110 million From the data, we can conclude that _________in Mexico in 2007.

What is the relationship shown by the circular flow among income, total expenditure, and GDP?

What term is used to describe the lowest point of a business cycle?

Which of the following is NOT part of the expenditure approach to measuring GDP?

How does the income approach measure GDP?

-In the above figure, which point represents an economy which is at the peak part of a business cycle?

In the calculation of GDP by the expenditure approach, exports from the United States must be

The United Nationʹs Human Development Report 2006) ranked Norway first in its Human Development Index with GDP per person equal to $38,454. The United States , with GDP per person of $39,676, is ranked eighth. Which of the following could explain this ranking?

To calculate GDP using the expenditure approach, in part it is necessary to add exports and subtract imports.

How are changes in inventory treated in GDP?

In the circular flow model of an economy, households

Goods that are produced this year, stored in inventories, and then sold to consumers next year

The income approach measures GDP by adding together compensation of employees, proprietorsʹ income,_________ .

-The figure above shows a

In the expenditure approach to GDP, the largest component is

In the circular flow diagram, aggregate expenditure includes the sum of

Potential GDP

The circular flow diagram shows

The circular flow shows that the household sector earns its income by

The four categories of expenditure used by the expenditure approach method to calculate GDP are