Exam 27: Measuring Domestic Output and National Income

A statistic called Gross Output (GO) sums together the value of economic activity taking place in each of the four stages of a productive economy, namely,

Net exports is a positive number when

If real GDP declines in a given year, nominal GDP

Suppose nominal GDP in 2009 was $100 billion and in 2010 it was $260 billion.The general price index in 2009 was 100 and in 2010 it was 180.Between 2009 and 2010, the real GDP rose by approximately

Which of the following is included in GDP?

If nominal GDP in one year is $5,000 billion and the price index is 135, then the real GDP that year would be $3,704 billion.

The growth of GDP may understate changes in the economy's economic well-being over time if the

Consumption of fixed capital (depreciation) can be determined by

Personal income will equal disposable income when

(Consider This) Capital is a

The amount of new output produced per year for both consumption and additions to capital stock is measured by

Alejandro Scoobertini owns a store specializing in soccer jerseys.In 2016, he purchased $150,000 worth of jerseys from manufacturers, employed one worker for $40,000, purchased $20,000 worth of supplies from an office supply store, and sold jerseys for $280,000.Based on this information, what was the value added at Alejandro's store in 2016?

Suppose that the base year is 2015, and the GDP price index in 2014 is 92.0.This implies that the

The value added of a firm is the market value of

To avoid multiple counting in national income accounts,

Personal income (PI) is the income that households are free to spend or save as they please.

Tom Atoe grows fruits and vegetables for home consumption.This activity is

Economy A: gross investment equals depreciation Economy B: depreciation exceeds gross investment Economy C: gross investment exceeds depreciation Based on this information, positive net investment is occurring in

Value added can be determined by

Suppose Smith pays $100 to Jones.