MACROECONOMICS CHAPTER 5
if net national product is $250 billion and indirect taxes are $5 billion, then national income is
$245 billion
if gross investment in 2009 is $600 billion and depreciation in 2012 is $50 billion, net investment in 2012 is
$550 billion
_____ is commonly defined as six consecutive months of declining real GDP
a recession
which of the following is an example of a final good or service
a tractor purchased by a farmer to cultivate his farm
gross domestic product measures
all of these: the total spending on currently produced final goods and services in the country, the total market value of all currently-produced final output in the country, the total income earned from current production of final goods and services in the country
in the circular flow diagram, the different payments made by firms to households are
all of these: wages and salaries, interest on borrowed money, rent on office and factory buildings
when a country is experiencing persistent deflation, then
both real GDP is greater than nominal GDP after the base year and real GDP is less than nominal GDP before the base year are correct
which of the following is not a transfer payment
corporate dividends
gdp measures the total income of all citizens of a country
false
this year's nominal GDP is this year's output of final goods and services evaluated in base year dollars
false
in macroeconomics, underground activities include
illegal activities and non-market transactions are correct
if the value of net exports is negative, then
imports exceed exports
suppose that an economy is experiencing continuously raising prices. if 2000 is the base year, then the real GDP in 2009 is _____ the nominal GDP
less than
which of the following must be true before a recession is considered a depression
none of these need to be true before an economy is considered a recession
more abundant leisure time increases _____, but it ______ real GDP
social welfare; decreases
the most severe decline in output in U.S. history took place during
the 1929-1933 period
one major lesson that we learn from the circular flow diagram is that
total income in the economy must always equal total spending
because gdp ignores most transactions that do not take place in organized markets it probably led us to underestimate the true growth in real output in recent years
true
real GDP is a gross domestic product measured
using the prices of a specified base year