GDP

GDP (SSEMA1)

Types and What is counted in GDP

Multiple Choice

GDP per capita takes into consideration:

• Inflation

• Population

• Prices

GDP Per Capita takes into the account the population of nation

DGP/population: GDP per capita

Multiple Choice

Nominal GDP takes into consideration

• Uses current prices

• Inflation

• population

Nominal GDP takes into consideration Current Prices

REAL GDP is adjusted for Infation!!

Component of GDP affected:

C=Consumer Spending

I=Investment

G=Government Spending

X-M= Imports-Exports

NC=Not Counted in GDP

Multiple Choice

A Farmer purchases a new tractor

• Consumer spending

• Investment

• Government Spending

• x-m

• NC

Multiple Select

Paper purchased by a publisher.

• Intermediate Goods

• Final Goods

• None of these

Multiple Choice

Are Intermediate goods included in GDP?

• Yes

• NO

• Maybe

• What are Intermediate goods

​What is not included in GDP?

​Intermediate goods

​Used goods

​Black Market

​Financial Transactions

​Household Production

​Transfer Payments

Multiple Choice

Effect on GDP

• Increase

• Decrease

• No Change

Multiple Choice

You spend $7.00 to attend a movie

• C

• I

• G

• XM

Multiple Choice

Effect on GDP

• Increase

• Decrease

• NO Change

Multiple Choice

Business increase their current inventories

• Consumer spending

• Investment

• Government spending

• X-m

• NC

Multiple Choice

Effect on GDP

• Increase

• Decrease

• No Change

Multiple Choice

Worried about consumer confidence, Ford purchases less sheet metal for cars.

• C

• I

• G

• XM

• NC

Multiple Choice

Effect on GDP

• Increase

• Decrease

• No Change

Multiple Choice

A retired man cashes his social security check from the government.

• C

• I

• G

• XM

• NC

Multiple Choice

Effect on GDP

• Increase

• Decrease

• No Change

Multiple Choice

A French company purchases a one-year membership to PartyPeople.com, a U.S. based company.

• C

• I

• G

• XM

• NC

Multiple Choice

Effect on GDP

• Increase

• Decrease

• No change

Multiple Choice

A person pays $450.00 a month to rent an apartment

• C

• I

• G

• XM

• NC

Multiple Choice

Effect on GDP

• Increase

• Decrease

• No change

Multiple Choice

Worried about a recession, people begin saving more money.

• C

• I

• G

• XM

• NC

Multiple Choice

Effect on GDP

• Increase

• Decrease

• No Change

Multiple Choice

The U.S. Government hires 10 Chinese language experts from China to train U.S. Workers.

• C

• I

• G

• XM

• NC

Multiple Choice

Effect on GDP

• Increase

• Decrease

• No Change

Multiple Choice

Government closes school for the month of March.

• C

• I

• G

• XM

• NC

Multiple Choice

Effect on GDP

• Increase

• Decrease

• No Change

Look at 2020 Data Schools closed Q2 along with a great deal of the rest of the country.