Exam 8: GDP: Measuring Total Production and Income

Consumption spending is $4.5 billion,gross private domestic investment is $3 billion,and government expenditures are $2 billion.If GDP is $14 billion,which of the following could be true regarding exports and imports in the economy?

Which of the following would increase GNP in the United States?

An example of a transfer payment is

Suppose Bob works for Mary as a proofreader.Mary and Bob fall deeply in love,marry and have eight children.Bob stops working for Mary in order to care for the children.What will be the effect on GDP?

Under what circumstances would the GDP deflator be less than 100 after the base year?

What is the largest component of spending in the United States?

Which of the following would increase disposable personal income?

Table 8-17 A very simple economy produces three goods: movies,burgers,and bikes.The quantities produced and their corresponding prices for 2006 and 2013 are shown in the table above. -Refer to Table 8-17.What is real GDP in 2013,using 2006 as the base year?

Which of the following is a true statement about the impact of World War II on the U.S.economy?

To calculate GDP using the value-added method,one would add up

The underground economy - the informal sector - can be a significant drag on the economies of developing countries.Why are firms in the informal sector often less efficient than firms in the formal sector?

What is the underground economy and how could it hurt an economy? How does it hurt developing economies?

The drawback to calculating real GDP using base-year prices is that

Value added equals the market price of the firm's product minus

National income equals gross domestic product

Government spending ________ is included in gross domestic product.

Investment spending includes spending on

The measure of production that values output using base-year prices is called

Table 8-29 -Refer to Table 8-29.Based on the table above,what is national income for this economy?

Which of the following could cause nominal GDP to increase,but real GDP to decrease?