Macro Chapter 8 example #61283

Nominal GDP is GDP in a given year

The nominal GDP of the US in 2010 was approximately $14.6 trillion. This means

The output of Mexican citizens who work in Texas would be included in the

Disposable personal income equals personal income

In 2010, which component of the GDP had a negative value?

In the US since the mid-1980s, consumption as a percentage of GDP has

In May 2009, Ford Motor Company's sales were down 20% from a year earlier. These events were caused by

National income equals gross national product minus

Which of the following in not directly counted in GDP?

Which of the following statements about the underground economy is true?

A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where

Which of the following could cause nominal GDP to decrease, but real GDP to increase?

GDP understates the total production of final goods and services because of the omission of

If real GDP in 2011 (using 2002 prices) is lower than nominal GDP of 2010, then

Depreciation is

Investment, as defined by economists, would include the purchase of a

To calculate GDP by the expenditure method, one must add

The US work week has declined from 60 hours in 1890 to 40 hours today. The impact of the decline in working hours

Which of the following is not an example of a transfer payment?

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

If an American firm opened a production facility in India, the total value of the production will be included in the

The purchase by a foreign government of an airplane produced in the US is included in US

Which of the following would be directly counted in GDP in 2012?

The Philippines and Vietnam have roughly the same size population. suppose the GDP of the Philippines if $1,000 billion and the GDP of Vietnam is $10,000 billion. you should conclude

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

If GDP calculations included measurements of pollution and environmental damage, GDP values would most likely be

During a business cycle expansion, total production ______ and total employment ______

Recent estimates put the size of the underground economy in the US at _____ of measured GDP

Real GDP is GDP in a given year

T/F: GDP accounting rules do not adjust for production that pollutes the economy

In the first half of 2011, automobile sales in the US were lower than they were in the first half of 2010. the decrease in auto sales impacts GDP because new automobiles are counted as ______ when purchased by households and ______ when purchased by businesses

Increases in real GDP would overstate the increase in the well-being of a country over time if, over that time period, the

Which of the following headlines would be more closely related to what macro economists study than what micro study?

If prices in the economy rise, then

The GDP deflator is a measure of the

National income equals GDP

Macro, as opposed to micro, includes the study of what determines the

Suppose, in 2012, you purchased a house built in 2003. Which of the following would be included in the GDP of 2012?

In the circular flow model, the value of total income for an economy _____ the value of total production.

The GDP deflator is

Which of the following is not true about the composition of GDP in 2010?

The purchase of a new house is included in

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

Which of the following is not a durable good?

If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is

Which of the following goods is directly counted in GDP?