Exam 4: Gdp: Measuring Total Production, Income and Economic Growth

A company named Home Depot sells new and used doors to contractors who build new homes. Home Depot also sells new and used doors to homeowners. Which of the following would be counted in GDP?

Using the information in the following table, calculate the rate of increase in the price level from 2017 to 2018. Use the percentage change in the GDP deflator. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Fees that Australian universities receive from overseas students studying in Australia are not included as part of GDP but are included as part of Gross National Income (GNI), as GNI includes flows of funds from overseas.

The economic growth rate is measured using:

The 'GDP deflator' is a measure of the price level and is calculated by dividing ________ by ________ and multiplying by 100.

Why do individuals and firms sometimes conceal the buying and selling of goods and services from the official measurement of GDP, and what proportion of GDP is this estimated to comprise in Australia? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Gross domestic product in the economy is measured by the:

Which of the following is included in the gross domestic product for an economy in a given year?

Which of the following is not one of the four main policy concerns of Australian macroeconomic policy?

Gross national income (GNI)is defined as the value of final goods and services produced:

Nominal GDP is GDP measured in current prices and can be smaller than real GDP.

Debbie makes porcelain plates in her home and sells them to a gallery. She spent $400 last month on supplies and made 50 plates. She sold the plates to the gallery at $25 per plate. The gallery sells all the plates for $40 each. For all of the 50 plates, what is Debbie's total value added? For all the 50 plates, what is the gallery's total value added? Explain your answer. _____________________________________________________________________________________________ _____________________________________________________________________________________________

What is usually the smallest component of spending in GDP in Australia?

If the GDP deflator rises from 185 to 190, what is the percentage increase in the price level between the two years?

If prices are rising on average, then real GDP will:

A truck that is produced in 2018 will not be sold until 2019. According to the definition of GDP, in which year's GDP should it be counted?

An example of a 'final good' would be:

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next? _____________________________________________________________________________________________ _____________________________________________________________________________________________

GDP is not a perfect measure of wellbeing because:

Use the circular-flow diagram to explain why the value of total expenditure in an economy is equal to the value of total income. _____________________________________________________________________________________________ _____________________________________________________________________________________________