Exam 4: Measuring GDP and Economic Growth

At 2015 prices, the value of production in 2016 was 6 percentage points higher than in 2015. At 2016 prices, the value of production in 2016 was 4 percentage points higher than in 2015. Using the chain-weighted output index, real GDP is ________ in 2016 than in 2015.

Gross private domestic investment is a component of which approach to measuring GDP?

________ is gross investment minus ________.

Potential GDP is

Compensation paid to employees represented ________ of GDP for the United States in 2014.

Real GDP in 2015 is $10 trillion. Between 2015 and 2016, using 2015 prices, GDP grew 3 percent and using 2016 prices real GDP grew 7 percent. Using the chain-weighted output index method, real GDP in 2016 is ________ trillion.

Real GDP fluctuates from year to year but is always below potential GDP.

All of the following are included in gross private domestic investment expenditure EXCEPT a

Depreciation is defined as the

What term is used to describe the lowest point of a business cycle?

A recession occurs when real GDP decreases for at least 6 months.

The largest component of GDP in the expenditure approach is

What is the difference between real and nominal GDP and why do economists make this distinction?

Which of the following is CORRECT?

According to the article, ________ can be expected to ________ this year.

-Using the data in the above table, gross domestic product as calculated by the income approach equals ________.

Is every product produced in the United States included in U.S. gross domestic product?

Gross private domestic investment is all purchases of newly produced business capital goods and buildings

Which of the following items is not a component of the expenditure approach to measuring U.S. 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 ________.