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