Chapter 10 Measuring a nation's Income
According to the circular-flow diagram GDP
Can be computed as either the revenue firms receive from the sales of goods and services or the payments the make to factors of production.
Retained earning is income that
Corporations have earned but have not paid out to their owners
A recession has traditionally been defined as a period during which
real GDP declines for two consecutive quarters.
Which of the following is always measured in prices from a base-year
real but not nominal GDp
In the base year, the GDP deflator is always
100
In the united states in 2009, purchases of capital equipment, inventories, and structures represented approximately
11 percent of GDP
In the United States in 2009, Consumption represented approximately
70 percent of GDP
A transfer payment is
A form of government spending that is not made in exchange for a currently produced good or services
which of the following is included in the investment component of GDP
All of the above are included in the investment component of GDP
Macroeconomists study
Economy-Wide phenomena
How does U.S gross domestic product (GDP) differ from U.S gross national product (GNP)
GNP= GDP + income earned by U.S citizens abroad - income that foreign citizens earned in the U.S.
Which of the following statistics is usually regarded as the best single measure of a society's economic well-being?
Gross domestic product
Disposable personal income is the income that
Households and non corporate businesses have left after paying taxes and non-taxes payments to the government.
U.S GDP
Includes production of foreigners working in the U.S but excludes production but excludes production by U.S. residents working in foreign countries
GDP
Is used to monitor the performance of the overall economy and is the single best measure of a society's economic well-being.
which of the following statements about GDP is correct?
Nominal GDP values production at current prices, whereas real GDP values production at constant prices
When Economists talk about growth in the economy, they measure that growth as the
Percentage change in real GDP from one period to another.
When studying changes in the economy over time, economists want a measure of the total quantity of goods and services the economy is producing that is not affected by changes in the prices of those goods and services. in other words, economists want to study.
Real GDP
which of the following is always measured in prices from a base-year?
Real but not nominal GDP
Which of the following is included in the investment component of GDP
Spending on new business equipment such as power tools but not spending on stocks and binds.
GDP is Defined as the
Value of all final goods and services produced within a country in a given period of time.
In a simple circular-flow diagram, households buy goods and services wit the income they get from
all of the above are correct
Most goods and services produced at home
and most goods and services produced illegally are excluded from GDP
Expenditures on a nation's domestic production
are equal to its domestic production
GDP per person tells us the income and expenditure of the
average person in the economy
According to the circular-flow diagram GDP
can be computed as the total income paid by firms or as expenditures on final goods and services.
The basic tools of supply and demand are
central to macroeconomic analysis as well as to microeconomics analysis.
Real GDP is the Yearly production of final goods and services valued at
constant prices
Real GDP is the yearly production of final goods and services valued at
constant prices
In the national income accounts, depreciation is called
consumption of fixed capital
Retained earnings is income that
corporations have earned but have not paid out to their owners.
If total spending rises from one year to the next, then
either the economy must be producing a larger output of goods and services, or goods and services must be selling at higher prices, or both
Net exports equal
exports minus imports
Recessions are not associated with which of the following
falling unemployment
Government purchases include spending on goods and services by
federal, state, and local governments
The term economists use to describe a situation in which the economy's overall price level is rising is
inflation
Income generated by a nation's domestic production
is equal to is domestic production
Much of macroeconomics attempts to explain
long-run growth and short-run fluctuations in real GDP
The GDP Deflator is the ratio of
nominal GDP to real GDP multiplied by 100
Changes in the GDP deflator reflect
only changes in prices
The inflation rate is the
percentage change in the price level from one period to another.
The Income that households and non corporate businesses receive is called
personal income
Which government entity computes U.S GDP every three months?
the department of commerce
Total income from domestic production of final goods and services equal
the expenditures for these goods whoever buys them.
The percentage change in the price level from one period to another is called
the inflation rate
National income is defined as
the total income earned by a nation's permanent residents in the production of goods and services
A form of government spending that is not made in exchange for currently produced good or services is called
transfer payment