Exam 7: Macroeconomic Measurements: GDP and Real GDP

A) $13,050.
B) $11,550.
C) $8,600.
D) $11,450.
E) $14,000.

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A) all final goods and services produced within a country's borders in a year.
B) only intermediate goods produced within a country's borders in a year.
C) all final goods and services produced within a country's borders in a year minus gross private domestic investment.
D) only intermediate goods produced within a country's borders in a year plus gross private domestic investment.
E) all final goods and services produced within a country's borders in a year minus capital consumption allowance.

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A) $3,200 billion
B) $4,000 billion
C) $4,980 billion
D) $1,880 billion
E) There is not enough information to answer the question.

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A) $200.
B) -$200.
C) $600.
D) -$1,400.
E) $1,400

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A) Jack purchases $2,300 worth of stock in company X.
B) Bob mows his lawn and washes and irons his shirts.
C) Helen receives $4,000 a year in Social Security payments.
D) a and b
E) a, b, and c

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A) exports divided by imports.
B) the sum of exports and imports.
C) exports minus imports.
D) exports during the year.
E) none of the above

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A) National income accountants consider the portion of corporate profits that is used to pay corporate profits taxes to be income earned by households but not received.
B) Net domestic product (NDP) is a smaller dollar amount than GDP.
C) Personal income includes transfer payments.
D) b and c
E) a, b, and c

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A) Yes, because Real GDP declined during two consecutive quarters in 2012
B) No, because Real GDP did not decline during three consecutive quarters in 2012.
C) Yes, because Real GDP was lower at the end of the year than it was at the beginning of the year.
D) This information cannot be determined because the determination of a recession is based upon GDP not Real GDP.

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A) peak, contraction, trough, expansion, recovery
B) peak, contraction, recovery, trough, expansion
C) peak, contraction, trough, recovery, expansion
D) contraction, peak, trough, recovery, expansion
E) recovery, trough, peak, expansion, contraction

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A) larger; smaller
B) larger; larger
C) smaller; larger
D) smaller; smaller

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A) cheaper dollars.
B) quality of goods produced.
C) base-year dollars.
D) nominal dollars.
E) current dollars.

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A) Indirect business taxes are a component of national income because when added to the other components of national income, the sum must equal GDP.
B) Indirect business taxes must be subtracted from national income to yield a figure equal to GDP.
C) Indirect business taxes are a part of national income because they are considered a payment to a factor of production.
D) Indirect business taxes are not part of national income because they are not considered a payment to a factor of production.

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A) $6,062
B) $5,731
C) $3,072
D) $6,382
E) $2,637

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A) in which prices are unstable.
B) in which prices are lowest.
C) in which prices are highest.
D) that serves as a reference point or benchmark.
E) in which nominal output is largest.

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A) business purchases of new capital goods.
B) purchases of new residential housing.
C) fixed investment.
D) business purchases of new capital goods and purchases of new residential housing.
E) either c or d

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The recovery phase is the period when Re...

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