Exam 2

India has a GDP of 23,000 billion Indian rupees, and a population of 1.1 billion. The exchange rate is 50 rupees per U.S. dollar. Calculate the GDP per capita of India as measured in U.S. dollars.

$418

The CzechRepublic has a GDP of 2,000 billion koruny. The exchange rate is 20 koruny per U.S. dollar. The Czech population is 20 million. Calculate the per capita GDP of the CzechRepublic in U.S. dollars.

$5000

If real GDP in the U.S. was $15.2 trillion in 2014 and $17.4 in 2015, by what percent did real GDP increase?

14.47%

Consumption in the United States is about ________________________ of GDP, and it moves relatively little over time.

68%

Which of the following is included in the calculated Gross Domestic Product?

A local ice cream store sells $17,000 worth of cones and sundaes on July 1.

Ethiopia has a GDP of $8 billion (measured in U.S. dollars) and a population of 55 million. Costa Rica has a GDP of $9 billion (measured in U.S. dollars) and a population of 4 million. Calculate per capita GDP for each country.

Ethiopia = $145.00 Costa Rica = $2250.00

Which of the following statements is true?

GDP includes spending on recreation and travel, but it does not cover leisure time.

The demand measure of GDP accounting adds together:

consumption, investment, government purchases, and trade balance.

Final goods or services used to compute GDP refer to

goods and services purchased by the ultimate users.

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

Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then:

imports exceed exports by $50 billion.

Real GDP is measured each _ and reported__.

quarter; on an annual basis.

The difference between nominal GDP and real GDP is:

real GDP adjusts for inflation

The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________________________ refers to the statistic after it has been adjusted for inflation.

real value

Investment (I) includes:

the amount spent on new factories and machinery.

GDP is:

the value of all final goods and services produced domestically.

A recession can best be defined as:

two consecutive quarters of falling real GDP

If nominal GDP increases:

you know that either actual production or the price level increased.