Lisa MauroEconomics 2013October 14, 2010Chapter 24 Homework7. 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.YearNominal GDP,BillionsPrice Index(2000 = 100)Real GDP,BillionsCalculationsInflate or Deflate1964$663.6 22.13$ 2,876.6 636.6/.2213Inflate19741500.034.73$ 4,319.0 1500/.3473Inflate19843933.267.66$ 5,813.2 3933.2/.6766Inflate19947072.290.26$ 7,835.4 7072.2/.9026Inflate200411685.9109.46$ 10,676.0 11685.9/1.0946Deflate13. Which are included in this year’s GDP? Explaina. Interest on an AT&T corporate bondIncluded as interest is income to the recipientb. Social Security payments received by a retired factory workerNot included ~ only a transfer paymentc. The unpaid services of a family member in painting the family homeNot included ~ no way to count it non-market productiond. The income of a dentistIncluded ~ it is income, payment for final servicee. The money received by Smith when she sells her economics textbook to a book buyer
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