Exam 4: Measuring Gdp and Economic Growth

Which of the following is TRUE regarding the chain-weighted output index method? I. It is the method used to measure the growth rate of nominal GDP. II. It uses data from the current year and from the previous year. III. It is a method of measuring the growth rate of real GDP.

"As the credit crisis unfolded over the past year, one of the few certainties in the global economy seemed to be China's ability to plough on regardless of double-digit growth rates...The ...crisis has also focused ...on the need to update a growth model that...is still dependent on assembling goods for export without adding much value and on heavy industries that create pollution. Chinese companies have continued to find new foreign markets for their products...several other factors point to a slowing property market...production of steel, cement and air conditioners was down... Retail sales have risen by 23 per cent in each of the last two months". Beijing's Burden, www.FT.com, by Geoff Dyer, Sept. 23, 2008 -According to the article, ________ are expected to contribute ________ to China's real GDP in 2008.

According to the circular flow diagram, the dollar value of a nation's output is equal to

-Using the information in the table above, calculate the value of GDP.

A ton of coal purchased by your local utility to burn to make electricity would be best described as

A loaf of bread purchased by one of your instructors would be best described as

The factor market can best be described as where

-The table above shows Japan's real GDP between 1991 to 2001. a) Draw a figure with Japan's real GDP from 1991 to 2001. b) In the previous 30 years, the growth rate of Japan's potential GDP was 6 percent a year. On your graph, show the path that potential GDP would have followed if its GDP in 1991 was equal to potential GDP and the growth rate of potential GDP had been maintained in 1991-2001. c) Show the Lucas wedge on your figure.

Which of the following is not a component of the incomes approach to GDP?

Let C represent consumption expenditure, S saving, I gross private domestic investment, G government expenditure on goods and services, and X - M net exports of goods and services. Then GDP equals

Of the following, the largest component of GDP is

The circular flow model shows that consumer goods and services produced by business firms are sold in the

An increase in exports of goods or services with no change in imports of goods or services

The data show Argentina's GDP (using purchasing power parity) in billions of dollars. Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 GDP($) 182 209 235 255 277 274 294 324 340 333 338 330 300 Year 2003 2004 2005 2006 GDP($) 333 373 420 470 The data show that

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

-In the above figure, consumption expenditure is shown by flow

In years with inflation, nominal GDP increases ________ real GDP.

GDP does not directly include intermediate goods because

Explain how gross investment, depreciation, net investment, and the capital stock are related.

The largest component of national income is