Economics- GDP, Business cycles, Unemployment and Inflation

Expectant parents buy supplies for the nursery.  Would this be included in GDP? 

• Yes - Consumer Spending
• Yes - Investment 
• No - Intermediate goods
• No - Non-market activity

The trade in exotic animals being illegally sold as pets is a multi-billion-dollar-a-year industry.  Is this included in GDP?

• Yes - Consumer spending
• Yes - Government Spending
• No - Underground Economy 
• No - Non-market activity 

The federal government is expected to spend $3.95 trillion this year.  Will this be counted in GDP?

• YES
• NO

Aly spends $400 on used textbooks at the beginning of the semester in college.  Is this included in the GDP?

• YES
• NO

The Los Angeles Lakers are in the playoffs this year and are expected to sell more merchandise. Will this count towards GDP?

• Yes - Investment

• Yes - Consumer Spending

• No - used items

• No - intermediate goods

Mr. Graves just bought a new watch.  Does this count in GDP?

• Yes 
• No

The value of the output of all final goods and services produced within a country in a year.

• total ouput
• Gross Domestic Product
• national income
• net domestic product

GDP is calculated by

• adding up the cost of goods used in producing the item
• subtracting all costs from total revenue
• adding consumption + investment +government spending+ (exports sold - imports bought)

Michael Kors hires designers to come up with new product lines.  Is this included in GDP?

• Yes - Consumer Spending
• Yes - Investments 
• No - Black Market 
• No - purely financial transaction

A shoemaker increases its bulk purchases of leather to keep up with demand.  Is this included in GDP?

• Yes - Investment 
• Yes - Government Spending
• No - Intermediate Goods
• No - used item