GDP

Business spending on physical capital, new homes, and inventories is counted in which component of GDP?

• consumption

• investment

• government spending

• imports-exports

What type of GDP is calculated with the current year's prices?

• Nominal GDP

• Real GDP

• GDP per capita

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

• YES

• NO

Which items are added together to get Gross Domestic Product?

• Consumption, government spending, net exports, and treasury bonds

• Consumption, Interest payments, government spending, and net exports

• Consumption, aggregate demand, aggregate supply, and net exports

• Consumption, investment, government spending, and net exports

Which of the following would NOT increase a nation’s Potential GDP?

• A better educated and trained labor force

• The discovery of new natural resources

• A plague that reduces the population

• Investment in capital resources

Which BEST describes GDP?

• It is a measure of what is happening to prices in an economy

• GDP measures how much is produced in an economy in a given time period

• It is the data used to determine how many people are employed

• GDP is used to determine the inventories of businesses around the us

The formula for GDP is

• C+X+G+Y

• C-I-G-Xn

• C+I+G+Xn

• I+G-Xn-Xi

The total dollar value of all final goods and services produced within the country’s border in a given year after inflation is taken out of the data.

• Nominal GDP

• GDP/capita

• Gross GDP

• Real GDP

Which causes United States GDP to increase?

• Japan buys government securities

• Japan sells Japanese securities to the US

• The United states sells more goods to Japan

• The United States buys more Japanese goods

Goods, services, and intermediate products produced in other countries.

• import

• export