Exam 10: Measuring a Nations Income: Part B

If the U.S.government reports that GDP in the third quarter was $16 trillion at an annual rate,then the amount of income and expenditure during quarter three was $4 trillion.

Macroeconomic statistics include GDP,the inflation rate,the unemployment rate,retail sales,and the trade deficit.

Real GDP is a better gauge of economic well-being than is nominal GDP.

If a firm produces a good and then adds it to its inventory rather than selling it,for the purposes of GDP accounting the firm is considered to have "purchased" the good so it will count as part of that period's investment expenditures.

When an American doctor opens a practice in Bermuda,his production there is part of U.S.GNP.

If the value of an economy's imports exceeds the value of that economy's exports,then net exports is a negative number.

Both the value of hamburgers sold by a restaurant and the value of the beef it used to make these hamburgers are included in GDP.

GDP includes the value of paper clips but does not also count the value of the metal used to make them.

For an economy as a whole,income must exceed expenditure.

If consumption is $7000,exports are $600,government purchases are $2000,government transfers are $900,imports are $800,and investment is $1000,then GDP is $9,800.

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

If someone in the United States buys a surfboard produced in Australia,then that purchase is included in both the consumption component of U.S.GDP and the net exports component of U.S.GDP.

Purchases by American tourists in other countries increase GDP for both the country in which the purchase was made and for the U.S. ,since a U.S.citizen carried out the expenditure. ​

The basic tools of supply and demand are central to microeconomic analysis but are of little use to macroeconomics.

GDP is the market value of all final goods and services produced by a country's citizens in a given period of time.

Since transfer payments by government are not associated with the production of goods and services,they are not included in GDP.

The goal of macroeconomics is to explain the economic changes that affect many households,firms,and markets simultaneously.

Changes in inventory are included in the investment component of GDP.

U.S.GDP was almost $12 trillion in 2015.

A consumer buys toys made in China.The value of the toys is included only in the net exports component of GDP.