economics review questions ch 11 - Anne Ballou ECO 180 B Due Assignment#8 Review questions 1 The most important component of GDP out of(C I G or NX is

economics review questions ch 11 - Anne Ballou ECO 180 B...

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Anne Ballou ECO 180 B Due: 4/20/18 Assignment #8 Review questions : 1. The most important component of GDP out of (C, I, G, or NX) is net exports. An example of Consumption is buying a new TV as it is a durable consumption good. A example of investment is Target building a new warehouse. A example of government spending is defense spending, and an example of net exports are soccer balls produced in Mexico and sold in the US. 2. A larger GDP means the economy is in good shape and the nation is moving forward, but it could also be bad if a population is very high.
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Unformatted text preview: 3. No transfer payments from the government would not be included, because transfer payments are not considered part of GDP because it is not a payment for goods or services. 4. It does not affect GDP because resale, stocks, and bonds are not included in GDP. 5. Real GDP = [Nominal GDP / Price level (GDP Deflator)] x 100 If GDP Deflator is less than 100, Real GDP is higher than nominal GDP, which was the case in year 2000. 6. The most recent unemployment rate relates to the long run average by...
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