chapter8 homework

what are the four major categories of expenditure

consumption, investment, government purchases, and net exports

the largest component of gross domestic income is

wages

what are the four categories of income

wages, interest, rent, and profit

Real GDP per capita is often used as measure of general well-being. While increases in real GDP often do lead to increases in the well-being of the population, why is real GDP not a perfect measure of well-being

GDP does not include crime rates or income distribution. The value of leisure is not included. The costs of pollution are not included.

why is GDP an imperfect measurement of total production in the economy?

GDP does not include household production or production form the underground economy

which of the following would be included in the gross national product (GNP) of the United States

Production from a U.S firm that operates in Mexico.

suppose the base year is 2001. Looking at GDP data from the United States from 2001 to the present, what would be true of the relationship between nominal GDP and real GDP?

RGDP< NGDP because prices are rising

which of the following equation sums up the components of Gross Domestic Product (GDP)

Y= C+I+G+NX

disposable personal income is

personal income minus personal taxes