S17Jeopardy1.pptx - GDP Unemployment Inflation Loanable...

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GDPUnemploymentInflationLoanable Funds and Bond MarketsMiscellaneous$200$200$200$200$200$400$400$400$400$400$600$600$600$600$600$800$800$800$800$800$1,000$1,000$1,000$1,000$1,000
Answer
What are the four components of GDP?
Consumption, Investment, Government Spending, and Net Exports
What is the long run average real GDP growth rate?
3%
What is real 2017 GDP in 2016 dollars?
Answer
Some people incorrectly interpret GDP as happiness. What are four shortcomings of reported GDP statistics that make this an incorrect interpretation?
AnswerGDP $1,000A Toyota dealership imports three $1 cars from Japan in 2016 but is only able to sell one. In 2017, the dealership sells the remaining two cars, but at a higher price of $2. Break down the effects of these transactions on the four components of GDP in both years.
Answer

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