Macroeconomics Launchpad Homework Chapter 7
The equation that breaks GDP down by the four sources of aggregate spending is:
GDP = C + I + G + X - IM.
The dollar value of final goods and services only is counted in GDP because:
If we counted the value of all goods, we would count inputs, like the value of steel ina new automobile, more than once.
An example of a government transfer is a(n):
Social Security payment
Goods that are produced in a particular period but NOT sold in that period:
end up in inventory and are included in investment.
A country's exports minus its imports during a period are:
net exports
(Table: Peanut Butter and Jelly Economy) Look at the table Peanut Butter and Jelly Economy. From 2010 to 2011 real GDP ____ by _____
increased, 12.5%
(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. What is GDP?
$1,000
(Table: Measuring GDP) Look at the table Measuring GDP. Government purchases of goods and services are:
$300 billion
(Table: Lemonade and Cookies) Look at the table Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. If 2013 is the base year, real GDP in 2013 was:
$400
Enchanté Inc., a designer clothing company, buys $400 worth of silk and $30 worth of accessories to produce each dress. If the value added by Enchanté is equal to $200, then according to the value-added approach, the price of the designer dress should be:
$630
Which of the following transactions is included in the nation's gross domestic product?
A college student buys a pizza and has it delivered to her dorm room
Economists frequently use GDP per capita to reflect:
differences in living standards across countries.
The total income of households after taxes and government transfers is called:
disposable income
The circular-flow diagram illustrates all of the following in the U.S. economy EXCEPT:
growing income inequality