EconomicsExam - Gross domestic product (GDP) is a measure...

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Gross domestic product (GDP ) is a measure of the total market value of all final goods and services produced by the economy in a given year. The expenditures approach to GDP sums the total spending on final goods and services: GDP=C+IGross+G+Xnet. The economy’s stock of private capital expands when the investment is positive; stays constant when net investment is zero; and declines when net investment is negative. The income approach to GDP sums compensation to employees, rent, interest, proprietor’s income, corporate profits, and taxes on production and imports to obtain national income, and then subtracts net foreign factor income and adds a statistical discrepancy and consumption of fixed capital to obtain GDP. GDP includes: final, but not intermediate, goods. In 1933 net private domestic investment was a minus $6.0 billion. This means that: the production of 1933's GDP used up more. In national income accounting, consumption expenditures include: changes in Business inventories. Real GDP measures: current output at base year prices. If the unemployment rate is 9 percent and the natural rate of unemployment is 5 percent, then the: cyclical unemployment rate is 4 percent. Assume that Hernandez is
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EconomicsExam - Gross domestic product (GDP) is a measure...

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