Chapter 24 Questions

Chapter 24 Questions - Lisa Mauro Economics 2013 October...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Lisa Mauro Economics 2013 October 14, 2010 Chapter 24 Homework 7. Define Net exports: Exports minus Imports. 7 billion minus 5 billion = 2 billion US net exports. Net exports might be a negative amount when imports are higher than exports. 12. Year Nominal GDP, Billions Price Index (2000 = 100) Real GDP, Billions Calculations Inflate or Deflate 1964 $663.6 22.13 $ 2,876.6 636.6/.2213 Inflate 1974 1500.0 34.73 $ 4,319.0 1500/.3473 Inflate 1984 3933.2 67.66 $ 5,813.2 3933.2/.6766 Inflate 1994 7072.2 90.26 $ 7,835.4 7072.2/.9026 Inflate 2004 11685.9 109.46 $ 10,676.0 11685.9/1.0946 Deflate 13. Which are included in this year’s GDP? Explain Included as interest is income to the recipient b. Social Security payments received by a retired factory worker Not included ~ only a transfer payment c. The unpaid services of a family member in painting the family home Not included ~ no way to count it non-market production d. The income of a dentist Included ~ it is income, payment for final service
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/25/2011 for the course ECON 1 taught by Professor Young during the Fall '10 term at Edison State College.

Ask a homework question - tutors are online