Midterm 2 Practice Questions

Midterm 2 Practice - Chapter 7 Review Questions What is the dollar value of the total output produced within the borders of a nation What does the

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What is the dollar value of the total output produced within the borders of a nation? A nation’s GDP What does the sum of C+I+G+X produce? A nation’s GDP What is the monetary value of all final goods and services produced within a nation in a particular year? GDP If Smith pays Jones $100, has the GDP been impacted? Why? No, because this is a secondary monetary transaction, if Jones spends that money then it will change GDP via consumption If the value of total goods and services produced is $500 and the total goods and services sold are $450, which one is the GDP? The produced, $500 By only counting final goods what can national income accountants avoid? Multiple counting What does GDP measure and report output in? Dollar amounts What is the market value of all goods and services produced within a nation in a specific year? GDP If we summed up all of the market transactions in the economy what would happen? The sum would be larger than the GDP The GDP price index is used to adjust what for price changes? Nominal GDP Chapter 8 Review Questions An increase in real GDP or real GDP per capita best defines what? Economic growth Dividing real GDP by population gets you what? Real GDP per capita How does real GDP per capita grow versus real GDP? Either more slowly or more rapidly What does growth of real GDP per capita best measure in a nation? Improvements in the standard of living If real GDP jumps from 100 to 106 and the population jumps from 200 to 212, what happens to real GDP per capita? It will remain constant
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This note was uploaded on 04/14/2011 for the course ECON 202 taught by Professor Saleh during the Fall '08 term at Loyola Chicago.

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Midterm 2 Practice - Chapter 7 Review Questions What is the dollar value of the total output produced within the borders of a nation What does the

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