Macro

An example of an intermediate good would be

the rims on a new car

The purchase of a new automobile is included in

consumption expenditures on durable goods.

What is the largest component of spending in the U.S.

consumption spending

To calculate GDP by the expenditure method, one must add

consumption spending, investment spending, government spending, and net exports

Refer to table 8-1. Using all the information in the table nominal GDP for this simple economy equals

$8,750

The nominal GDP of the U.S. in 2015 was approximately $17.3 trillion. This means that

All of the above are true

In the cicular flow model, the value of total income for an economy ________ the value of production

Equals

Which of the following is not directly counted in GDP

Intermediate goods

In the United States in 2013, the bureau of economic analysis began counting spending on research and development as

Investment

Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for 2016?

The value of the services of the real estate agent

Which of the following transactions represents the purchase of a final good?

Your father buys a new John Deere riding lawn mower.

Which of the following goods is directly counted in GDP?

a 12-inch Subway sandwich purchased by a student

Investment, as defined by economists, would include the purchase of a

computer by an accounting firm

During a business cycle expansion, total production ________ and total employment ________.

increases, increases

The purchase of a new house is included in

investment expenditures

The purchase by a household in china of a CD produced in the United States is included in U.S.

net exports

In calculating gross domestic product, the Bureau of Economic Analysis uses the sum of the market value of final goods and services produced. This means that the BEA

values goods and services at their market prices, multiplies them by the quantity produced, and then adds them up.