chapter8 homework
what are the four major categories of expenditure
consumption, investment, government purchases, and net exports
the largest component of gross domestic income is
wages
what are the four categories of income
wages, interest, rent, and profit
Real GDP per capita is often used as measure of general well-being. While increases in real GDP often do lead to increases in the well-being of the population, why is real GDP not a perfect measure of well-being
GDP does not include crime rates or income distribution. The value of leisure is not included. The costs of pollution are not included.
why is GDP an imperfect measurement of total production in the economy?
GDP does not include household production or production form the underground economy
which of the following would be included in the gross national product (GNP) of the United States
Production from a U.S firm that operates in Mexico.
suppose the base year is 2001. Looking at GDP data from the United States from 2001 to the present, what would be true of the relationship between nominal GDP and real GDP?
RGDP< NGDP because prices are rising
which of the following equation sums up the components of Gross Domestic Product (GDP)
Y= C+I+G+NX
disposable personal income is
personal income minus personal taxes