Exam 15: Gross Domestic Product

Exhibit 5-6 Use the table below to answer the following question(s). Refer to Exhibit 5-6. Between Year 1 and Year 2, the general level of prices increased by approximately:

Using the income approach, the smallest component in the calculation of GDP is:

Using the income approach, the largest component in the calculation of GDP is:

In an economy with persistent inflation,

Why is it important to distinguish nominal GDP from real GDP?

Economic values that are measured in units per period of time are referred to as:

In a given year, U.S. nominal GDP was $5,744 billion and the GDP chain price index is 93.6. Real GDP is:

Because of transactions which take place in the underground economy, the:

Which of the following is a shortcoming of GDP?

Which of the following would not be included in the government consumption expenditures and gross investment (G) category of GDP?

If net exports are a negative number, then:

Exhibit 5-4 Gross domestic product data As shown in Exhibit 5-4, using the income approach, gross domestic product (GDP) is:

Which of the following expenditures would not be included in GDP?

Which one of the following is not a component of GDP, as measured using the expenditure approach?

Because GDP does not account for improvements in the quality of goods, the GDP calculation:

To compute national income from GDP,

Personal income equals disposable personal income plus:

The lower portion of the circular flow model contains factor markets in which households receive:

Activities that are directly included in GDP accounts include:

Exhibit 5-7 GDP data (billions of dollars) In Exhibit 5-7, personal income (PI) is: