sample exam #1

the nominal GDP of the U.S. in 2016 was approximately $18.6 trillion. This means that

total income in 2016 was around 18.6 trillion the value of output in 2016 was around 18.6 trillion total spending in 2016 was around 18.6 trillion all are true

The GDP deflator in year 2 is 105, using year 1 as the base year. This means that, on average the cost of goods and services is

5% higher inn year 2 than in year 1

the size of the underground economy would tend to decrease if the government of a country

decreased government regulations on business

legalizing all forms of illegal activities

increases GDP and reduces the size of the underground economy

the purchase of a new house is included in

investment expenditures

if the quantity of goods and services produced in the economy decreases

it may be possible for nominal GDP to increase

gross domestic product is calculated by summing up..

the total market value of final goods and services produced in the economy during a period of time