Exam 4: Measuring Gdp and Economic Growth

Valuing the quantities of goods produced in consecutive years using prices in both years and then averaging the percentage changes in the value of output is part of the ________ method of calculating real GDP.

Household production is not measured in the GDP.

A business cycle is the pattern of short-run upward and downward movements in production and jobs.

Proprietors' income is a component of which approach to measuring GDP?

List the components of the expenditure approach to measuring GDP.

Gross investment is equal to

Choose the best statement.

The four parts of the business cycle occur in the following order

How are changes in inventory treated in GDP?

Suppose the country of Dingo experienced an economic trough in January 2017. We can conclude that

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?

Gross domestic product is the

Compared to the other sources of spending, net exports is

Net investment

-The table above gives the values of different expenditures in the United States during 1999. Answer the following questions about the United States. a) What was the value of net exports of goods and services in 1999? b) What was (nominal) GDP equal to in 1999? c) What was the (nominal) value of total production equal to in 1999?

An example of "investment" in the national income accounts is the purchase of

Normally in the United States the relationship between nominal and real GDP for a given year is

Several adjustments must be made to net domestic product at factor cost in order to calculate GDP. One of these adjustments is adding depreciation. What is depreciation and why must it be added?

According to the BEA, in the second quarter of 2012 federal government spending on goods and services changed by -0.1 percent. This decrease could have been caused by a decrease in spending on

The following data are estimates describing Ireland's economy in 2006 and 2007 (in millions of euros, in constant prices): 2006 2007 Consumption 84,000 89,000 Government expenditure 24,000 26,000 Investment 48,000 48,000 Exports 142,000 151,000 Imports 123,000 128,000 Subsidies 1,800 1,900 Taxes 500 500 Which of the following is TRUE regarding Ireland's economy?