Exam 27: Measuring Domestic Output and National Income

The statistic called Gross Output (GO) is bigger than GDP, because GO sums up the values in all stages of a productive economy, whereas GDP accounts only for the final stage.

All expenditures on new construction are included as investment in calculating GDP.

(Consider This) When making a capital stock and reservoir analogy, the

The "underground economy" is mostly made up of

GDP is the market value of

The total amount of income earned by U.S.resource suppliers in a year, plus taxes on production and imports, is measured by

If net foreign factor income is zero and there are no statistical discrepancies, the sum of national income and the consumption of fixed capital equals

If inflows to the capital stock are greater than outflows, then

If the price index is rising over a period of time, then the real GDP in years

In an economy that is experiencing a shrinking production capacity,

Which of the following do national income accountants consider to be investment?

GDP does not include which of the following activities?

Nominal GDP has generally risen more rapidly than real GDP since World War II in the United States, suggesting that

Interest on the public debt is included as a part of government purchases in determining GDP by the expenditures method.

The fact that nominal GDP has risen faster than real GDP

Disinvestment occurs when

Gross private domestic investment can be divided into replacement investment and net investment.

Which of the following best defines national income?

If gross investment is positive, it means that firm (or the economy) must be expanding.

Real GDP measures