Which of the following is included in US GDP

A NEWLY CONSTRUCTED HOUSE

4 questions
1. It is discovered that consumer bought $6 billion more furniture than
previously thought. North Carolina.
Consumption increased by 6 billion, GDP increases by 6 billion
2. It is discovered that consumers bought $6 billion more furniture than
previous thought. Manufactured in Sweden
Consumption increases by $6, imports increase by 6, GDP no change
3. It is discovered that business bought $6. North Carolina.
Investment increases by 6, GPD increase 6.
4. It is discovered that business bought $6. Sweden.
Investment increase 6, imports increase 6, GDP no change.
Since US investment is generally higher than US national saving:
THE US CURRENT ACCOUNT BALANCE IS GENERAGLLY NEGATIVE.
If C500 I 150 G 100 NX 40 GNP 800 NFP?
10
The nominal interest rate is the rate at which the dollar value of an asset
increase over time.
The real interest rate is the rate at which the purchasing power of an asset
increases over time.
The expected real interest rate.
Capital goods are
Final goods because they are not used up during a given year.
Private disposable income=y+nfp+tr+int-t
Net government income=t-tr-int
Sum is y+nfp which is GNP
Each of the following is a principal professional activity of macro excel
Analyzing a firms pricing decisions.
How does GDP differ from GNP?
GND MEASURES THE OUTPUT OF FACTORS OF PRODUCTION OWNED BY A
NATION
HIGHER THAN
Consumer spending is spending by households on final goods.
Domestic, domestically and abroad.
Net national product NNP is
Gross national product minus consumption of fixed capital.
According to the text, countries with many well trained economic
Politicians rather than economists are often..
Which of the following is not a use of an economys private saving?
Financing consumption.
What are the three approaches to measuring economic activity?
The income approach, the expenditure approach and the product approach.
Saving is flow variable, which wealth is a stock variable.
Which of the following best describes the relationship?
Saving is a flow into the stock of wealth.
2 questions
Can average labor productivity fall even though?
Yes, if employment rises faster than output.
Which of the following cases would result in increased total output?
With constant average productivity, the labor force increases, but
employment increases more slowly than unemployment.
3 questions
What is national wealth?
National wealth is a countrys domestic physical assets plus its net foreign
assets.

Why is national wealth important?

The long run economic well-being of a country depends on wealth.
How is national wealth linked to national saving?
National saving is the flow of additions to the stock of national wealth.
The idea of the invisible hand is that
With the free markets and individuals acting in their best interests.
Which of the following statements are positive in nature and which are
normative?
P/P/N/P/N
2 Questions
Private saving is equal to
Disposable income minus consumption.
National saving is equal to
Government saving plus private saving.
What is a business cycle
The sort run movements (expansions and recessions) of economic activity.
The unemployment rate increases during recessions and decreases during
expansions, and never reaches zero.
For the purpose of assessing an economys growth performance, the more
important statistic is real GDP.
Real GDP is better measure of economic growth than nominal GDP because
An increase in nominal GDP may show an increase in prices rather than an
increase in output.
According to the text, which of the following conditions is necessary for a
theory to be useful?
It must have implications that can be tested by empirical analysis.
Fred the farmer purchased five new tractors at 20000 each.
100000
The components of total spending are
Consumption, investment, government spending and net exports.
Why are imports subtracted when GDP is calculated in the expenditure
approach?
They are produced abroad, and GDP only counts domestic production.
Keynesian economists believe that the best way to solve the problem of high
unemployment is
Increase in government spending to stimulate demand.
Classical economics believe that the best way to solve the problem of high
unemployment is
To do nothing, the economy will rapidly adjust on its own.
If an American construction company built a road in Kuwait, this activity would
be
Included in US GNP only for that portion that was..
The definition of an inflation is
A period in which average prices are rising over time.
Prior to World War II, consumer prices in the United States generally rose
during wars and fell during peacetime, while since World War II, consumer
prices in the US have generally increased steadily.
A country has a trade deficit when exports are less than imports and has a
trade surplus when exports are greater than imports.
In recent years, the US economy has had trade deficits while from 1900 to
1970, the US largely had trade surpluses.
Keynesians think that wages and prices adjusts.
Slowly, will persist.
Intermediate goods and services are used up in the production of other goods
and services, and include items such as grain, crude oil, and lumber
Why is the distinction between intermediate and final goods important for

measuring GDP?
GDP only includes final goods, in order to avoid double counting.
Using the expenditure approach, this transaction would be recorded as
A 1000000 increase in net exports.
Using the income approach, this transaction would be recorded as
1000000 paid to domestic factors of production.
Using the product approach, this transaction would be recorded as
A 100000000 increases in production of capital goods.
The two major reasons for the tremendous..
Population growth and increased productivity.
Real GDP
And nominal GDP are equal in the base year because
Large calculation increases in the quantity of output.
Marvins metal company..
Intermediate goods.