Exam 4: Measuring Gdp and Economic Growth

If you buy a new water skis and other new equipment for $2,500 and take a week off of your job, where you earn $1,000 a week, to go water skiing. The equipment you purchased was all produced in the United States. You think that the week was worth $4,000. As a result of your vacation, GDP changes by how much?

Which of the following is NOT included in real GDP?

The circular flow diagram shows only the aggregate expenditures measure of GDP.

-In the above figure, the distance between points T and U represents

In computing GDP, it is essential to

Depreciation is defined as the

Reported GDP increases when, in fact, total production is unchanged when i. there is a shift from household production to market production. ii. a previously illegal activity is legalized.

Intermediate goods and services are one of the largest components of the expenditure approach to measuring GDP.

An expansion occurs when the level of real GDP is

Business cycles

Which of the following expressions equals GDP?

Which of the following is correct about a time-series graph? I. The x-axis measures time. II. A time-series graph can reveal if there is a trend in the variable.

A recession is commonly defined as a period with

The circular flow diagram shows that the flow of payments to the factors used to produce goods and services exceeds the flow of payments for final goods and services.

Component Amount (dollars) Net taxes 10 Personal consumption expenditure 50 Depreciation 8 Government expenditure 20 Gros investment 26 Net exports -10 Compensation of employees 65 -Using the information in the table above, calculate the government?s budget deficit or surplus.

In the post World War II period, considerable growth in total production took place in the United States. But at the same time, businesses were dumping their waste into the Great Lakes with minimal cost to themselves, significantly polluting the bodies of water as a result. This occurrence is an example where

The five categories of income used in the income approach to the measurement of GDP are

A time-series graph displays the price of copper. The slope of the line is negative for periods when the

When IBM, an American firm, produces computer chips in another country, this production is not included in U.S. GDP because the production did not take place in the United States.

To measure GDP using the expenditure approach you must collect data on