Macro- Chapter 8 (homework)
the largest component of gross domestic income is
wages
Consider the following simple economy that produces only three goods: Denim pants 80 $40 100 $50 Wine 90 $11 80 $10 textbooks 15 $90 20 $100 Real GDP in 2017 equals $____
$6,680
In 2011, the value of the GDP deflator is ___ (Enter your response rounded to the nearest whole number.) Nominal GDP $13,195 billion $13,841 billion Real GDP $11,319 billion $11,567 billion
117
In 2012, the value of the GDP deflator is ___ (Enter your response rounded to the nearest whole number.) Nominal GDP $13,195 billion $13,841 billion Real GDP $11,319 billion $11,567 billion
120
national income is
GDP minus depreciation.
Real GDP per capita is often used as a measure of generalwell-being. While increases in real GDP often do lead to increases in thewell-being of thepopulation, why is real GDP not a perfect measure ofwell-being?
The costs of pollution are not included. GDP does not include crime rates or income distribution. The value of leisure is not included. All of the above.
What are the four categories of income?
Wages, Interest, Rent, and Profit.
Which of the following equations sums up the components of Gross Domestic Product (GDP)?
Y = C + I + G + NX
If prices rise over time, then real GDP will be
larger than nominal GDP in years before the base year.
disposable personal income is
personal income minus personal taxes
Indicate whether each of the following is a final good, an intermediate good, or neither.
Coffee beans purchased by a coffee shop Intermediate good One share of Google stock Neither A new pick-up truck purchased by a consumer Final good A new home purchased by a family Final good
The figure shows the values of the components of GDP for the year 2016. Based on the data shown, which of the following statements regarding the components of GDP is false?
Consumer spending on services is less than the sum of spending on durable and nondurable goods.
Consumer spending on services is less than the sum of spending on durable and nondurable goods.
Consumption, investment, government purchases, and net exports
The following table illustrates the value added approach to calculating GDP. Please complete the table.
Cotton farmer Raw Cotton = $2 The cotton farmer 2 Textile mill Cotton woven into cotton fabric = $4 The textile mill 2 Shirt company Fabric made into a shirt = $16 The shirt company 12 L.L.Bean Shirt sold on L.L.Bean's website = $36 L.L.Bean 20 Total Value Added 36
Based on the table and graph, which of the following statements regarding total production and total income is true?
Each measure of production and income gives a different value for total production and income
Why is GDP an imperfect measurement of total production in the economy?
GDP does not include household production or production from the underground economy
The table and figure show GDP measured in terms of the total income received by households. Use the table and figure to help determine which of the following statements about the division of income is false.
Gross domestic income is measured precisely.
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
personal income is
national income minus retained corporate earnings plus government transfer payments and interest on government bonds.
