Econ Chapter 19

GDP is: Selected Answer: the value of all final goods and services produced domestically.

On the demand side of GDP, consumption by _____________ is the largest component of GDP, accounting for about two-thirds of the GDP in any year. Selected Answer: households

A business cycle reflects changes in economic activity, particularly real GDP. The stages of a business cycle are: Selected Answer: expansion, peak, recession, trough

_________ are now the largest single component of the supply side of GDP, representing over half of GDP. Selected Answer: Services

Consumption is the purchase of goods and services by: Selected Answer: households.

To compare the GDP of two different countries with different currencies, it is necessary to use _________________________. Selected Answer: an exchange rate

The gap between exports and imports in a nation's economy is called the ___________. Selected Answer: trade balance

The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain. Selected Answer: production

Consumption in the United States is about ____________ of GDP, and it moves relatively little over time. Selected Answer: 68%

Durable goods and non-durable goods comprise approximately ________ of the supply side of the GDP. Selected Answer: 45%

Which of the following are most likely classified by economists as consumer durable goods? Selected Answer: automobiles, furniture

If imports exceed exports, as in recent years, then __________ exists. Selected Answer: a trade deficit

_______________, which can be approximated by the growth of gross domestic product, ultimately determines the prevailing standard of living in a country. Selected Answer: Economic growth

The change in inventories, a component of aggregate supply, comprises roughly __________ of GDP. Selected Answer: 0.5%

GDP does not directly include: Selected Answer: the value of intermediate goods sold during a period.

Which of the following is not included in GDP? Selected Answer: cash income paid to a day laborer that is not reported to the tax authorities

Which of the following is not counted as a part of GDP? Selected Answer: the purchase of 100 shares of AT&T stock by your grandfather.

_________ is calculated by taking _________ and then subtracting the value of how much physical capital is worn out, or reduced in value because of aging, over the course of a year. Selected Answer: NNP; GNP

India has a GDP of 23,000 billion Indian rupees, and a population of 1.1 billion. The exchange rate is 50 rupees per U.S. dollar. Calculate the GDP per capita of India as measured in U.S. dollars. Selected Answer: $418

Which of the following statements is true? Selected Answer: GDP includes spending on recreation and travel, but it does not cover leisure time.

The Czech Republic has a GDP of 2,000 billion koruny. The exchange rate is 20 koruny per U.S. dollar. The Czech population is 20 million. Calculate the per capita GDP of the Czech Republic in U.S. dollars.

In 1990, the GDP of Canada was $680 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth 85 U.S. cents. In 2000, the GDP of Canada was $1000 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth 69 U.S. cents. By what percentage did the GDP of Canada increase from 1990 to 2000 in Canadian dollars?

Which of the following is included in GDP calculations?

Which of the following is included in GDP?

The change in inventories, a component of aggregate supply, comprises roughly __________ of GDP.

Middle-income countries, which include much of Latin America, Eastern Europe, and some countries in East Asia, have per capita GDP in the range of ___________.

For most high-income countries of the world, GDP _________________ over time.

If imports exceed exports, as in recent years, then __________ exists.

To compare the GDP of two different countries with different currencies, it is necessary to use _________________________.

___________ is a small category that refers to the goods produced by one business that have yet to be sold to consumers, and are either still sitting in warehouses and on store shelves.

___________ is about two-thirds of the demand side of GDP, but it moves relatively little over time.

_________ are now the largest single component of the supply side of GDP, representing over half of GDP.

Which of the following is included in the calculated Gross Domestic Product?

Once every __________, the Census Bureau does a comprehensive survey of housing and residential finance.

Which of the following are most likely classified by economists as consumer durable goods?

Consumption in the United States is about ____________ of GDP, and it moves relatively little over time.

Consumption is the purchase of goods and services by:

GDP is:

The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation.

The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain.

The demand measure of GDP accounting adds together:

GDP does not directly include:

Ethiopia has a GDP of $8 billion (measured in U.S. dollars) and a population of 55 million. Costa Rica has a GDP of $9 billion (measured in U.S. dollars) and a population of 4 million. Calculate per capita GDP for each country.

India has a GDP of 23,000 billion Indian rupees, and a population of 1.1 billion. The exchange rate is 50 rupees per U.S. dollar. Calculate the GDP per capita of India as measured in U.S. dollars.

On the demand side of GDP, consumption by _____________ is the largest component of GDP, accounting for about two-thirds of the GDP in any year.

Durable goods and non-durable goods comprise approximately ________ of the supply side of the GDP.

_______________, which can be approximated by the growth of gross domestic product, ultimately determines the prevailing standard of living in a country.

Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then: