Economics

GDP = C + I + G + (X - M).

All final goods and services that make up GDP can be expressed as

consumption, gross private domestic investment, government spending for goods and services, and net exports.

The expenditure approach for the calculation of GDP includes spending on

personal consumption expenditures

The largest component of GDP is

GDP chain price index.

The most broadly based price index is the

Used items are not included in GDP.

. Which of the following expenditures would not be included in GDP?

None of the above would be included.

Which of the following items is included in the calculation of GDP?

Depreciation

National income (NI) is calculated by adjusting GDP for

a piece of glass bought this year by a consumer to fix a broken window

. Which of the following would be counted as a final good for inclusion in GDP?

the cleaning-up expenses associated with pollution, which is a newly produced good.

GDP includes

only final goods and services

Gross domestic product (GDP) includes

the market value of all final goods and services produced within the borders of a nation.

Gross domestic product is officially measured by adding together the

flow of goods, resources, payments, and expenditures between the sectors of the economy.

The circular flow of economic activity is a model of the

nominal GDP for year X/ GDP chain price index for year X x 100.

The equation for determining real GDP for year X is

Disposable personal income (DI) subtracts taxes from personal income (PI).

Which national income account should be examined to discover trends in the after-tax income that people have to save and spend?

GDP includes only market transactions.

Which of the following is a shortcoming of GDP?

Transfer payments are not included in national income.

Which of the following is included in personal income but not in national income?