GDP in Macroeconomics

What is GDP?

• Gosh Dang Problem

• Gross Domestic Product

• Game Domination People

• Gross Directive Program

The study of the economy as a whole--the "big picture"--is called

• Microeconomics

• Mercantilism

• Macroeconomics

• Macronutrition

Which of the following is NOT TRUE of GDP?

• It considers the market value of both intermediate and final goods and services.

• It includes the market value of all final goods and services.

• It includes all final goods and services produced in the nation within a set time period.

• Consumer spending is a big factor in the expenditure model of GDP.

What does the "I" stand for in the expenditures model equation?

• Intermediate goods

• Inclusive demand

• Investments

• Initial Supply

The government hires contractors to build and pave highways. Is this included in GDP within the expenditures model?

• YES

• NO

Eating at a restaurant is an example of ________ spending on _____ goods.

• government; durable

• investment; durable

• consumer; non-durable

• export; non-durable

What does the (X-M) mean in the expenditure model for GDP?

• Income-Taxes

• Taxes-Imports

• Spending--Exports

• Exports-Imports

What are the two main types of GDP?

• Growth & Stabilizing

• Normal & Inferior

• Real & Nonmarket

• Nominal & Real

Which type of GDP accounts for inflation and is therefore the MOST accurate?

• Nominal

• Growth

• Real

• Non-Market

Which of the following is NOT measured in GDP?

• Illegal narcotics sales

• Running a plumbing business

• Selling produce

• Buying an American-made car