Macro Exam 1
consumption expenditure
expenditures on U.S. produced steaks, shoes, and doctor visits are most likely classified as ______________.
produced within a country
gross domestic product is equal to the market value of all the final goods and services _______________ in a given period of time.
at current market prices
how are final goods and services valued when measuring nominal GDP?
omits the goods and services that people produce for themselves
real GDP per person is not an accurate measure of the standard of living because it:
$500
| Data for 2015 | Data for 2016 ------------------------------------------------------------- Item | Quantity Price | Quantity Price ------------------------------------------------------------- Bananas....... 100 .............. $2.00 .......|.......... 125 ................ $4.00 Sunscreen... 60 ............... $5.00 .......|........... 75 ................ $4.00 ------------------------------------------------------------- Bananaland produces only bananas and sunscreen and the quantities and prices for 2015 and 2016 are given in the table above. The base year is 2015. Real GDP in 2015 is equal to ___________.
decrease in GDP that lasts for at least 6 months
A standard definition of recession is a ___________.
$230,000
During last year, a country produced 20,000 pizzas and 10,000 hamburgers and nothing else. The pizzas sold for $10 each and the hamburgers for $3. Nominal GDP was _______.
within a country's borders by citizens and non-citizens
GDP includes the goods and services produced __________.
1, 2, 3
Government expenditures on goods and services include: 1. the new york city library's purchase of new books 2. washington DC's purchase of gas for its city buses 3. California's payment of wages to prison guards
Y= C + I + G + NX
Gross Domestic Product equals
final goods and services
Gross Domestic Product is the market value of all ___________ produced within a country in a given period of time.
A.) $-254 Billion B.) $9257 Billion
ITEM Billions of $ -------------------------------------------------------------- Consumption expenditure ................................................... 6258 Investment ................................................................................... 1623 Government Expenditure on goods and services ... 1630 Exports of goods and services .......................................... 998 Imports of goods and services ......................................... 1252 -------------------------------------------------------------- A. What was the value of net exports of goods and services? B. What was (nominal) GDP equal to in 1999?
$34 billion
Last year in Candamica, consumption expenditure was $20 billion, interst, rent, and profit were $2.5 billion, government expenditure on goods and services was $7 billion, net exports of goods and services was $5 billion, and investment was $2 billion. Hence total expenditure was ___________.
base year prices
Real GDP measures the value of goods and services produced in a given year valued using ___________.
$1,000,000
The base year is 2012. A country only produces Blu-ray players. The price of a Blu-ray player in 2012 was $100. The price of a Blu-ray player was $90 in 2013. The quantity of Blu-ray players produced in 2012 was 10,000 units and in 2013was 10,500 units. Real GDP in 2012 equals.
$510
The table gives the production and prices for a small nation that produces only bread (top) and soda (bottom). The base year is 2010 (right). What is real GDP in 2010?
firms pay out everything they receive as income to the factors of production.
Total expenditure equals total income because _____________________________.
$780 billion
Total income in a country in 2012 is $780 billion. Total expenditure in the country is __________.
1
U.S. Net exports include 1. sales of hollywood movies to the rest of the world 2. honda cars sold in japan 3. production of Ford mustangs in China that are sold in china
3
Which of the following is included as an investment in GDP? 1. cars produced during the year but unsold at the end of the year 2. new capital equipment produced and purchased during the year 3. purchases of a company's stocks and bonds
market value, $120
Wobet is a small country that produces only steak and potatoes. Steaks have a price of $10 each and potatoes have a price of $1 each. Suppose that Wobet produces 10 steaks and 20 potatoes in 2010. Using _____________ Wobet has a GDP equal to ____________.
trough and peak
a business cycle has two turning points, which are the _________.
$250
a south sea island produces only coconuts. in 2012 the price of a coconut is $1 and the quantity producedis 200. In 2013, the base price of a coconut is $1.50 and the quantity produced is 250. 2012 is the base year. Real GDP in 2013 is _______________.
$480
assume that a small country produces only green peppers and red peppers. Last year, it produced 100 green peppers and 50 red peppers and sold them at prices of $2 per green pepper and $3 per red pepper. This year, it produced 150 green peppers and 60 red peppers and sold them at prices of $2 per green pepper and $4 per red pepper. What is real GDP this year if the base year is last year?
households
consumption expenditure includes spending by ________.
firms
investment is the expenditure done by _____.
exports minus the value of imports
net exports of goods and services is equal to the value of ________.
prices and/or total production increase
nominal gdp increases if either__________.
all expenditure on final goods and services produced in the US in a given time period
the expenditure approach to measuring GDP equals:
consumption expenditure, investment, government expenditure on goods and services, and net exports of goods and services
the expenditure approach to measuring GDP is done by using data on only
wages, interest, rent, and profits
the income approach to measuring GDP is based on summing _________.
Gross Domestic Product
the total production within an economy is measured as
not included
when calculating GDP, purchases of used goods are __________.
