Exam 5: Measuring a Nations Income

If nominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125.

A manufacturer produces 1 million televisions in the first quarter of the year. It sells 900,000 of them before the end of the first quarter, and holds the others in its warehouse. How will the 100,000 unsold televisions be treated in the GDP statistics?

A recession has traditionally been defined as a period during which

Consumption is $7 trillion, investment is $1.5 trillion, government expenditures are $2 trillion, government transfer payments are $1 trillion, exports are $1.50 trillion and imports are $1.25 trillion. What is GDP?

If in some year real GDP was $5 trillion and the GDP deflator was 200, what was nominal GDP?

Unlike national income, personal income

Explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of GDP, but the value of intermediate goods produced and not sold is included directly as part of GDP.

Which of the following is included in the investment component of GDP?

Suppose that over the last twenty-five years a country's nominal GDP grew to three times its former size. In the meantime, population grew by 40 percent and prices rose by 100 percent. What happened to real GDP per person?

For an economy as a whole,

Which of the following is included in GDP?

Transactions involving items produced in the past, such as the sale of a 5-year-old automobile by a used car dealership or the purchase of an antique rocking chair by a person at a yard sale, are

Which of the following is included in the consumption component of U.S. GDP?

Define GDP. Remember to be specific about what it includes.

If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, which would rise?

Disposable personal income is the income that

In order to include many different goods and services in an aggregate measure, GDP is computed using, primarily,

Table 23-12 A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. -Refer to Table 23-12. Calculate real and nominal GDP for the year 2013.

Real GDP evaluates current production using prices that are fixed at past levels and therefore shows how the economy's overall production of goods and services changes over time.

In the economy of Talikastan in 2015, consumption was $3000, exports were $1200, GDP was $8000, government purchases were $1200, and imports were $600. What was Talikastan's investment in 2015?