Exam 6: Production, Income, and Employment

Suppose a woman has an exterminator treat her house every month but she then marries the exterminator who now performs the service for free.As a result,GDP would

Which of the following might result in an underestimation of GDP?

The largest component of GDP is

Which of the following would be included in the income approach to calculating U.S.GDP?

If the boat industry produced $20 billion worth of boats,but $50 billion worth of boats were sold to consumers,the decrease in inventory would lead to

As of mid-2009,the unemployment rate for blacks is approximately 1.7 times the rate for

In the expenditure approach to measuring GDP,we add the values of all

If nominal GDP increased,which of the following could also have occurred?

Private investment expenditure,adds to the nation's existing stock of capital.

What is the main factor that explains why government spending typically exceeds government purchases?

In an economy with 4,000 unemployed people and 8,000 employed people,the unemployment rate is

When people buy land,their purchases are included in GDP.

Private investment expenditure,which is a flow,affects the stock of capital.

Which of the following would be considered a component of government purchases?

Unemployment rates in many continental European countries have been consistently higher compared to the United States.The difference is mostly

Full employment occurs when

If output rises,then income

Which of the following is a definition of value added? Revenue received by a firm for its output

Which of the following would be classified as private investment?

If the economy is operating at an unemployment rate above the full employment rate,