econ chapter 20

Which of the following variables is not used to compute GDP from the income side? Wages and salaries Depreciation Business profits Consumption

Consumption

Which of these terms have approximately the same value when measuring macroeconomic activity?

production and income

National income accounting focuses on the relationship between income and:

real GDP in the short run

In the circular flow model, who supplies factors of production in exchange for income?

Households

Which of these is a function that the financial system provides for savers and borrowers?

Matching savers and borrowers

Which measure of GDP represents changes in the quantity of goods and services produced in the economy, holding prices constant?

Real GDP

Which of the following goods and services would be excluded from personal consumption expenditures according to StatsCan?

a new house

As the value of a country's real GDP increases, the country is likely to:

devote more resources to pollution reduction

Gross domestic product is best defined as the:

market value of all final goods and services produced in a country during a period of time

The total national income actually received by a country's residents is:

smaller than the value of GDP

Both the CPI and the GDP deflator are measures of the average prices for the economy, yet they differ in several ways. Which of these statements is correct?

the CPI includes goods produced in prior years, as well as imported goods, which the GDP deflator does not.

real gdp is

the value of goods and services evaluated at base year prices

In the classical model, when households save:

business investment will offset that savings