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Unformatted text preview: GDP 3.1. What was the growth rate of real GDP in 2001? A. 0.3% B. 3% C. 19% D. 24% Explanation: Calculate the percentage change as follows: ($9,215 - $9,191)/$9,191 = 0.0026. Round up to 0.3%. 6. Which of the following is considered part of consumption spending in the calculation of GDP for 2001? A. The construction of a new house in Dallas, Texas in 2001 B. The production of computer chips in December 2001 that will be used in making cell phones in 2002 C. The completion of a tax return on April 15, 2001 by a paid tax preparer D. The purchase of a baseball that was signed by legendary player Babe Ruth in 1920. Explanation: New housing comes under the heading of investment in calculating GDP. The computer chip represents an intermediate good, and the baseball was certainly not produced in 2001. The completed tax return represents an intermediate good, and the baseball was certainly not produced in 2001....
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This note was uploaded on 03/19/2011 for the course ECON 302 taught by Professor Wroee during the Spring '08 term at American River.
- Spring '08