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
