Exam 7: B: Measuring the Economys Output

In an economy, the value of inventories fell by $50 billion from Year 1 to Year 2.In calculating total investment for Year 2, national income accountants would increase it by $50 billion.

Assume an economy which is producing only one product.Output and price data for a three-year period are as follows. Refer to the above data.If year 2 is chosen as the base year, the price index for year one is:

Gross private domestic investment exceeds depreciation in an economy experiencing expanding production capacity.

Net Domestic Income at the factor cost refers to the:

Refer to the information below.The gross domestic product for this economy is: All figures are in billions.

Assume a manufacturer of stereo speakers purchases $40 worth of components for each speaker.The completed speaker sells for $70.The value added by the manufacturer for each speaker is:

GDP by the expenditure approach is equal to:

Following is data for a hypothetical economy.The base year is 2002 (Price index = 100). Refer to the above data.From 2005 to 2006, prices rose by approximately:

In the treatment of Canadian exports and imports, national income accountants:

Answer the question(s) based on the following data, using year 1 as the base year.All dollars are in billions. Refer to the above data.Real GDP in year 2 was approximately:

By summing the dollar value of all market transactions in the economy we would:

GDP includes:

The following are national income account data for a hypothetical economy in billions of dollars: gross investment ($320); imports ($35); exports ($22); personal consumption expenditures ($2,460); and, government purchases ($470).What is GDP in this economy?

A price index can rise from one year to the next even though:

Only three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5.The current year per unit prices of these three goods are A = $2, B = $3, and C = $1.If the per unit prices of the three goods each were $1 in a base year used to construct a GDP price index, then the GDP price index in the current year is:

A nation's capital stock was valued at $300 billion at the start of the year and $350 billion at the end.Consumption of private fixed capital in the year was $25 billion.Assuming stable prices, gross investment was:

Transfer payments are:

Subtracting the purchase of intermediate products from the value of the sales of final products determines the amount of:

GDP is the total market value of:

Gross domestic product (GDP) is equal to personal consumption expenditures: