Exam 10: Gross Domestic Product and Economic Growth

According to the "rule of 70," if real GDP grows at 4 percent a year it would take about 14 years for the real GDP to double.

GDP is a good measure of the

Suppose that in the year 2013 real GDP was $9,000 billion and in 2014 real GDP was $9,400 billion. The rate of growth in real GDP between 2013 and 2014 would be

The nominal gross domestic product of 2013 is the

The value of the bricks purchased by a contractor to build a fireplace in a new home is not counted in GDP because

Adding together personal consumption expenditures, gross private domestic investment, government purchases of goods and services, and net exports gives

Suppose that in the year 2011 real GDP is $9,000 and in 2012 real GDP is $9,200 billion. Hence, the rate of growth in real GDP between 2007 and 2008 is 3.8 percent.

What can the U.S. government do to encourage research and development?

The broadest price index to calculate real GDP is the GDP deflator, which equals the ratio of the cost of buying all final goods and services in the current year to the cost of buying the identical goods at base-year prices.

Major gains in U.S. productivity growth in the 1990s came from technological progress.

The expenditures approach for calculating GDP includes all of the following except

Economists estimate that the value of transactions that take place in the underground economy is as high as ______ of GDP in the U.S.

When derived by the expenditures approach, GDP equals the sum of personal saving, gross investment, government transfer payments, and net exports of goods and services.

We do not count the value of the ground beef purchased by McDonald's as part of gross domestic product because this would be double counting.

The knowledge, experience, and skills of the work force are known as

Government policies that tend to speed up economic growth include all of the following except

Gross domestic product is calculated by adding up all the

If an economy produced 400 apples at 15 cents an apple and 600 oranges at 10 cents an orange, the market value of these goods would be

Real GDP is based on the prices existing in the year in which the goods and services were produced. Nominal GDP is real GDP adjusted to eliminate changes in prices.

If an investor purchased $50,000 of IBM stock on the New York Stock Exchange, this would