chp 6-7 - 1. A nation's gross domestic product (GDP): can...

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Unformatted text preview: 1. A nation's gross domestic product (GDP): can be found by summi ng C + I g + G + X n . is the dollar value of the total output produc ed by its citizen s, regardl ess of where they are living. can be found by summi ng C + S + G + X n . is always some amoun t less than its NDP. 2. The GDP is the: monet ary value of all final goods and service s produc ed within a nation in a particu lar year. nation al incom e minus all noninc ome charge s against output. monet ary value of all econo mic resour ces used in produc ing a 3. If intermediate goods and services were included in GDP: the GDP would then have to be deflate d for change s in the price level. nomin al GDP would exceed real GDP. the GDP would be overst ated. the GDP would be unders tated. 4. GDP can be calculated by summing: consu mption , invest ment, govern ment purcha ses, export s, and import s. invest ment, govern ment purcha ses, consu mption , and net export s. consu mption , invest ment, wages, and rents. consu mption , invest ment, govern 5. Net exports are: that portio n of consu mption and invest ment goods sent to other countri es. export s plus import s. export s less import s. import s less export s. 6. Net exports are negative when: a nation' s import s exceed its export s. the econo my's stock of capital goods is declini ng. deprec iation exceed s domes tic invest ment. a nation' s export s exceed its import s. 7. GDP is equal to: C + I g + G + X n . C + I g + G- X n . C + I n + G + X n . C + I n + G- X n . 8. As defined in national income accounting, investment includes: busine ss expen ditures on machi nery and equip ment. all consu mption . import s, but not export s. all nonfoo d items. 9. The smallest component of aggregate spending in the United States is: net export s. govern ment purcha ses. invest ment. consu mption . 10. In calculating GDP, governmental transfer payments, such as social security or unemployment compensation, are: not counte d. counte d as invest ment spendi ng. counte d as govern ment spendi ng. counte d as consu mption spendi ng. 11. The largest component of total expenditures in the United States is: net export s. govern ment purcha ses. consu mption . gross invest ment. 12. Government purchases include government spending on: govern ment consu mption goods and public capital goods. govern ment consu mption goods only. public capital goods only. govern ment consu mption goods, public capital goods, and transfe r payme nts. 13. Transfer payments are: exclud ed when calcula ting GDP becaus e they only reflect inflati on. exclud ed when calcula ting GDP becaus e they do not reflect current produc tion. includ ed when calcula ting GDP becaus e they are a catego ry of invest ment spendi ng. 14. In the treatment of U.S. exports and imports, national income accountants: subtra ct export s, but add import s, in calcula ting GDP....
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This note was uploaded on 10/19/2009 for the course ECON 2010 taught by Professor Staff during the Spring '08 term at Utah Valley University.

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chp 6-7 - 1. A nation's gross domestic product (GDP): can...

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