Macro

top 5 Population countries

China India US Indonesia Brazil

which is included in the income approach to GDP?

Compensation of Employees (Wages)

Currently, how much is spending for each of the following components, and what percentage of GDP does each one represent Consumer Business Government Net Export

Consumer Spending= 12,359 68.4% Business Spending= 3,030.6 16.8% Government Spending= 3,201.0 17.7% Net Exports= -530.4 -2.9%

The consumption of Fixed capitol in the Income approach to calculating GDP is called

Depreciation

% real rate of growth of GDP=

End GDP - Beginning GDP ------------------------------------------ *100 Beginning GDP

The Largest Component of GDP is?

Personal Consumption Expenditures

the largest component of GDP is

Personal Consumption Expenditures

Changes in Supply

Resource Prices Technology Taxes and Subsidies Price of Other Goods Producer Expectations Number of Sellers

top 5 geographical countries

Russia Canada China US Brazil

What are the six institutional factors that promote growth

Strong Property Rights Patents and Copyrights Efficient Financial Institutions Literacy and Widespread Education Free Trade A Competitive Market System

Changes in demand

Tastes Number of Buyers Income Price of Related Goods Consumer Expectations

GDP is the total market value of?

none of the above

which would be considered an investment according to economists?

the construction of a new computer chip factory by Intel

What is the correct way to calculate the unemployment rate

unemployed workers/labor force *100

four factors which account for instability

variability of expectations durability irregularity of innovation variability of profits

Non-income determinates of consumption and saving

wealth borrowing expectations real interest rates

positive economics

what is

normative economics

what ought to be

Income Approach

(Wages) Compensation of Employees (Rents) Rental Income (Interest) Net Interest (Profits) Corporate profits and Proprietor's income (Statistical Adjustments) Taxes on Production and Imports Depreciation

GDP in an economy is 11,050 billion. Consumer expenditures are 7,735 billion, Government purchases are 1,989 billion, and gross investment is 1,410 billion. net exports are

-84 billion

multiplier

1 --------- 1-MPC

Using the annual rate of economic growth, the "rule of 70" allows us to

Calculate the number of years required for the real GDP to double

the monetary value of all final goods and services produced by the United States economy during a year is?

GDP

Some historians date the start of the industrial revolution around the year 1776 when James Watt

Invented and built a more powerful steam engine

Money spent on the purchase of a new house is included in the GDP as a part of?

Investment

Economic Classifications

Low Income Economies= 1045 or less Lower Middle Income Economies= 1046-4125 Upper Middle Income Economies= 4126-12735 High Income Economies= 12736 or more

Exports less Imports can be described as?

Net Exports

which equation is correct relating Money GDP (m), Real GDP (R), and the Implicit Price Deflator (P)?

P=M/R*100

which of the following is a way to measure economic growth

Percent changes in real GDP

Expenditure Approach

Personal Consumption Expenditure Gross Private Domestic Investment Government Consumption Expenditures and Gross Investment Net Exports

top 5 GDP countries

US China Japan Germany U.K.

Changes in the level of Real GDP economic extending over time is a description of

a business cycle

a recession is defined as

a decline in Real GDP which last 6 months or longer

Net Exports is a positive number when?

a nations exports of goods and services exceeds its imports

multiplier

change in GDP --------------------- initial change in spending

the number of years for the Real GDP to double can be found by

dividing 70 by the annual growth rate

% real rate of growth

e-b ------ . 100 b

The value of corporate stocks and bonds traded in a given year is?

excluded from the calculations of GDP because they make no contribution to the current production of goods and services

what are the 5 types of unemployment

frictional structural cyclical seasonal long-term

Countries that have experienced modern economic growth have also tended to

have stable financial institutions