Macro Econ ch 27 hw

Government purchases include

federal, state, and local government expenditures.

There are several ways to measure aggregate output. The one favored by the Bureau of Economic Analysis is

gross domestic product.

Government purchases

include direct purchases of resources.

National income accountants define consumer nondurable goods as products that have an expected life of

less than 3 years.

The system that measures the economy's overall performance is formally known as

national income accounting.

The largest expenditure component of GDP is

personal consumption expenditures.

Human-made resources that are referred to as "recipes" includes

spending on new writing that increases the flow of entertainment and education.

The National Income and Product Accounts (NIPA) for the United States are compiled by the

Bureau of Economic Analysis.

The agency responsible for compiling the National Income and Product Accounts for the U.S. economy is the

Bureau of Economic Analysis.

Buying new furniture for your home would increase

consumer durable goods and therefore personal consumption expenditures.

Buying a new pair of jeans for yourself would increase

consumer nondurable goods and consequently personal consumption expenditures.

To signify government purchases, national income accountants use

the symbol G.

Which of the following will be included in U.S. GDP?

the value of the cars produced at a Japanese-owned Toyota factory in Ohio

U.S. GDP in 2021 was about

$23 trillion.

Answer this question based on the given information for an economy in some year. Dollar value of resource extraction activity = $20 billion Dollar value of production activity = $50 billion Dollar value of distribution activity = $70 billion Dollar value of final output = $140 billion Gross output for this economy equals

$280 billion.

Interest consists of the money households receive on

- corporate bonds. - certificates of deposit (CDs). - savings deposits.

Compensation of employees

- is paid as wages and salaries by business and government to their employees. - includes payments by employers into social insurance. - includes payments into private pension, health, and welfare funds for workers.

National income accountants define consumer durable goods as products that have an expected life of

3 years or more.

The U.S. government agency responsible for compiling the national income accounts is the

Commerce Department's Bureau of Economic Analysis (BEA).

The Bureau of Economic Analysis compiles the NIPA accounts. The letters NIPA represent

National Income and Product Accounts.

To manage the problem of adding dissimilar items when calculating GDP, the BEA

adds the monetary values of each final good or service produced.

The two broad categories of the nation's stock of capital

are informally referred to as "tools" and "recipes."

Transfer payments are not included in government purchases because

such payments generate no production.

Spending that pays for new or improved software is in

the "recipe" category of investment.

In 2020, the three largest economies in the world were (listed in order, from largest)

the United States, China, Japan.