Exam 4: Measuring GDP and Economic Growth

Which of the following relationships is correct?

An expansion occurs when the level of real GDP is

What is a recession?

The largest component of GDP in the expenditure approach is

-In the above figure,flow B represents ________.

The following data show Uruguay's GDP using purchasing power parity in billions of dollars. Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 GDP($) 26.1 25.8 23.3 24.3 27.9 30.1 33.9 37.2 40.2 Using the data,we can conclude that

Net investment equals gross investment minus depreciation.

Real GDP is not a perfect indicator of economic welfare because ________.

Item Billions of dollars Personal consumption expenditure 100 Gross private domestic investment 10 Government expenditure on goods and services 50 Exports of goods and services 30 Imports of goods and services 30 Net taxes 50 -The above table shows data from the GDP accounts of Hypothetica.Hypothetica's GDP is ________ billion.

The following data describe Mexico's economy in 2007. Government spending $210 billion Investment $210 billion Exports $272 billion Imports $283 billion GDP 1 trillion Population 110 million From the data,we can conclude that ________ in Mexico in 2007.

Which of the following statements is true?

Explain the business cycle by describing the phases and turning points.

-In the above figure,flow B represents households' ________.

If you buy a new water skis and other new equipment for $2,500 and take a week off of your job,where you earn $1,000 a week,to go water skiing.The equipment you purchased was all produced in the United States.You think that the week was worth $4,000.As a result of your vacation,GDP changes by how much?

A trend is

Corporate profits Net interest Indirect taxes less subsidies Depreciation Compensation of employees Proprietor's income Rental income Personal consumption expenditure Government expenditure on goods and services Net exports of goods and services \ 200 150 230 250 1,350 150 70 1,400 500 40 -Using the data in the above table,gross private domestic investment equals

Which of the following is a final good?

To calculate GDP using the expenditure approach,in part it is necessary to add exports and subtract imports.

Neither intermediate goods nor used goods are included in GDP.Explain why these expenditures are not included in GDP.

In the country of Darrowby,net domestic income at factor cost is $2.0 million.Gross domestic product is $3.0 million,and depreciation is $0.5 million.Indirect taxes less subsidies ________.