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macro test questions - What is GDP: a monetary value...

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What is GDP: a monetary value National income accountants can avoid multiple counting: intermediate good. Largest components of total expenditures in us: consumption Net exports: nation import exceeds its export. GDP differ from NDP: gross investment is used to calculate GDP and net investment for NDP. If depreciation exceeds gross investment: the economy’s stock of capital is shrinking. (Declining economy/ using up the inventory/ not being replaced) What’s the largest component of national income: compensation of employees. Real GDP and nominal GDP differ because the real GDP: has been adjusted for changes in the price level. In determining GDP economist adjust nominal GDP by using: GDP price index. (Real GDP= nominal GDP / GDP price index) The us gov agency responsible for compiling the national income accounts: BEA commerce department’s bureau of economic analysis. Enconomic growth is best define as: For a nation real GDP per capita to rise during a year what has to occur: real GDP must increase must increase quicker than population. Given the annual rate of econ. Growth the rule of 70 allows
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macro test questions - What is GDP: a monetary value...

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