MACRO CH. 5

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

inflation rate

100 X (deflator yr 2 - deflator yr 1) / (deflator yr 1)

GDP deflator

100 X (nominal GDP / real GDP)

which of the following is NOT an example of a durable good?

a business suit

gasoline is considered a final good if it is sold by

a gasoline station to a motorist in LA

a U.S. publisher purchases new computers that were manufactured in the U.S. This purchase by itself makes

a positive contribution both to investment and to GDP

government purchases

all spending on the goods and services purchased by the government (at federal, state, and local levels)

GDP deflator in base year

always 100

exports

foreign spending on the economy's goods and services

inventory accumulations

goods produced but not yet sold

who are the consumers in actual economy?

households and firms

Sheri, a U.S. citizen, works only in Germany. The value she adds to production in Germany is included

in german GDP, but is not included in U.S. GDP

consumption - renters

includes rent payments

consumption - homeowners

includes the imputed RENTAL VALUE OF THE HOUSE, but not the purchase price or mortgage payments

final goods

intended for the end user

Sarah spends $1200 on a new laptop to use in her publishing business. the laptop was built in China

investment rises by $1200, net exports fall by $1200, GDP is unchanged

residential capital

landlord's apartment building; a homeowner's personal residence

gross domestic product includes

legal final goods and services, but it excludes illegal final goods and services

GDP excludes most items that are produced and sold illegally and most items that are produced and consumed at home because

measuring them is too difficult

Martin, a U.S. citizen, travels to Mexico and buys a newly manufactured motorcycle made there. His purchase is included in

mexican GDP, but is not included in U.S. GDP

Consumption consists of spending by households on goods and services, with the exception of

purchases of new houses

transfer payments examples

social security, unemployment

macroeconomics

study of economy-wide phenomena

Jennifer lives in a home that was newly constructed in 2011 for which she paid $240,000. In 2014 she sold the house for $260,000. Which of the following statements is correct regarding the sale of the house?

the 2014 sale affected neither 2014 GDP nor 2011 GDP

real GDP per capita

the main indicator of the average person's standard of living

gross domestic product (GDP)

the market value of all final goods and services produced within a country in a given period of time

imports

the portions of C, I, and G that are spent on goods and services produced abroad

grapes are considered intermediate goods if

the purchaser uses them to make wine to sell to others but not if the purchaser eats them

a painter pays $500 for paint he uses to repaint a house. he then presents a bill for $1200 that covers his time and expenses to the homeowner. how much do these transactions add to the GDP?

$1200

James owns two houses. He rents one house to the Johnson family for $10,000 per year. He lives in the other house. If he were to rent the house in which he lives, he could earn $12,000 per year in rent. How much do the housing services provided by the two houses contribute to GDP?

$22,000

A steel company sells some steel to a bicycle company for $150. The bicycle company uses the steel to produce a bicycle, which it sells for $250. Taken together, these two transactions contribute

$250 to GDP

Ryan lives in an apartment where he pays $7,000 a year in rent. Sarah lives in a house that could be rented for $21,000 a year. How much do these housing services contribute to GDP?

$28,000

net exports

= exports - imports

which of the following items is included in U.S. GDP? A. goods produced by foreign citizens working in the U.S. B. the difference in the price of the sale of an existing home and its original purchase price C. known illegal activities D. none of the above

A

which of the following transactions is NOT included in the GDP? A. oranges sold to households by a grocer B. orange juice sold by a restaurant to its diners C. oranges sold by a farmer to a grocery store D. all of the above are included in GDP

C

GDP =

C + I + G + NX (= e - i)

which of the following domestically produced items is NOT included in GDP? A. a bottle of shampoo B. a hairdryer C. a haircut D. all of the above are included in GDP

D

which of the following is included in the consumption component of GDP? A. household purchase of appliances B. household purchases of medical care C. household purchases of food D. all of the above

D

which of the following is included in the investment component of GDP? A. households' purchases of newly constructed homes B. net additions to firms' inventories C. firms' purchases of capital equipment D. all of the above

D

which of the following items is counted as part of government purchases? A. the federal government pays the salary of a Navy Officer B. the State of Nevada pays a private firm to repaid a Nevada state highway C. the city of Las Vegas, Nevada pays a private firm to collect garbage in the city D. all of the above

D

which of the following items is included in U.S. GDP? A. final goods and services that are purchased by the U.S. federal govt B. intermediate goods that are produced in the U.S. but that are unsold at the end of the GDP accounting period C. goods and services produced by foreign citizens working in the U.S. D. all of the above

D

tangible goods

DVDs, mountain bikes, beer

T/F: GDP includes purchasing of NEW housing?

FALSE

T/F: GDP includes transfer payments (social security/ unemployment) ?

FALSE

T/F: Intermediate goods are included in GDP?

False

example of investment

baker purchases a stove

business capital

business structures, equipment, and intellectual property products

If we add goods to inventory, what component of GDP is affected?

consumption

education is included in what component of the gdp?

consumption

components of GDP

consumption investment government purchases new exports

Debbie spend $300 to buy her husband dinner at the finest restaurant in Boston

consumption and GDP rise by $300

general motors builds $500 million worth of cars, but consumers only buy $470 million of them

consumption rises by $470 million, inventory investment increases by $30 million, and GDP rises by $500 million

GDP includes: current or past produced goods?

current

Jane spends $800 on a computer to use in her editing business. She got last year's model on sale for a great price from a local manufacturer.

current GDP and investment do not change because the computer was built last year

intangible goods

dry cleaning, concerts, cell phone service

T/F: stocks and bonds are included in GDP

false

An American company operates a fast food restaurant in Paris, France. Which of the following statements is accurate?

the value of the goods and services produced by the restaurant is included in French GDP, but not in the U.S. GDP

GDP measures ...

total income of everyone in the economy and total expenditure on the economy's output of goods and services

consumption

total spending by HOUSEHOLDS on goods and services

investment

total spending on goods that will be used in FUTURE to produce more goods

inventory accumulations example

toyota car produced in 2019 but sold in 2020

intermediate goods

used as components or ingredients in the production of other goods

nominal GDP

values output using current prices NOT corrected for inflation

real GDP

values output using prices of a base year IS corrected for inflation


Kaugnay na mga set ng pag-aaral

Sociology - Real World - Ch 12: Family Issues

View Set

Physical Assessment Midterm Review

View Set

EAQ #5 Urinary/ Specimen collection

View Set

Controllers, Collaborator, Analyzers and Socialize

View Set

Psych Test Review Chapter 14 - Personality Theories

View Set

Principles of Marketing, CH 3 QUIZ

View Set