Chapter 6 Macro

which of the following is not included in GDP?

cash income paid to a day laborer that is not reported to the tax authorities

The largest component of GDP in 2012 from the demand side was:

consumption

the demand measure of GDP accounting adds together:

consumption, investment, government purchases, and trade balance

Once every _____, the Census Bureau does a comprehensive survey of housing and residential finance

10 years

_____ is calculated by taking _____ and then subtracting the value of how much physical capital is worn out, or reduced in value because of aging,over the course of a year

NNP; GNP

which of the following characteristics relate to gross domestic product (GDP)?

The value of the output of all goods and services produced within a country

For most high-income countries of the world, GDP _______ over time

has risen gradually

On the demand side of GDP, consumption by __________ is the largest component of GDP, accounting for about two-thirds of the GDP in any year.

households

what term is used to describe goods that have been produced, but not yet been sold?

inventories

The largest component of GDP in 2012 from the supply side was:

services

Investment (I) includes:

the amount spent on new factories and machinery

which of the following is included in GDP?

the fees charged for a stock broker's services

Which of the following is not counted as a part of GDP?

the purchase of 100 shares of AT&T stock by your grandfather

Which of the following is included in GDP calculations?

the university tuition paid to enroll in a course

GDP does not directly include:

the value of intermediate goods sold during a period

What term is used to describe gap between exports and imports?

trade balance

which of the following characteristics relate to trade surplus?

when exports exceed imports

which of the following characteristics relate to trough?

during the business cycle, the lowest point of output in a recession, before a recovery begins.

A business cycle reflects changes in economic activity, particularly real GDP. The stages of a business cycle are:

expansion, peak, recession, trough

In order to avoid double counting, statisticians just count the ______________.

final goods and services