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ECN 204 Chapter 5: Chapter 5 - GDP.docx

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25 Feb 2012

School

Ryerson University

Department

Course

Professor

Christos Shiamptanis

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Document Summary

A person with an high income can more easily afford life s necessities and luxuries: and enjoy a higher standard of living (better food, housing, job, cars, vacations) For an nation s overall economy, if the economy poor it means that the nations is producing low, and also by looking that the total income that everyone is earning: which is the task of gross domestic product (gdp) Gdp measures the total income and total expenditure: for an economy as a whole, income must equal expenditure . It is the same because every transaction as two parties: a buyer and seller y. If one person spends one dollar, it s an expenditure on one side and an income on the other. an good example would be to use the circular flow diagram. It talks about the transactions between household and firms y y total income and expenditure(wages, rent, and profits)

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Related Questions

If an economy's GDP falls, then it must be the case that the economy's

A. Income and saving fall

B. Income and market value of all products both fall.

C. Income falls and the market value of all production rises.

d.Income rises and the market value of all production falls.

2. Gross Domestic product measures

a. Income and expenditure.

B. Income

c. Expenditure.

d. Neither.

3. If all quantities produced in the united states rise by 13.4% and all prices fall by 13.4% which of the following occurs?

Does Real GDP rise or fall? Does the nominal GDP rise or fall?

4. Which of the following does not add to US GDP?

a. The federal gov. Sends a social security check to your grandmother.

b. CIty of new york pays a salary to policemen.

c. Air France buys a plane from Boeing, the US aircraft manufacturer.

5. IS the best single measure of a society's economic well-being the unemployment rate or the GDP?

6. Keynesian economics was developed by John Keynes in response to:

A. The great recession.

b. The great depression.

C. Out of control gov. spending.

17. For an economy as a whole,

a. Wages must equal profit.

b. consumption must equal income.

c. Income must equal expenditure.

d. Consumption must equal saving.

8. As in the case f Ireland, Keynesian economics does not tend to work in countries that:

a. Are large and self-sustaining.

b. Are small and insulated.

c. Are medium-sized with good governments.

d. Are smaller and are open to free (ish) trade.

e. Are large and have free trade.

Thanks! Please be as detailed as you can.!

According to the circular-flow diagram, GDP can be computed:

1. as the total income paid by firms or as expenditures on final goods and services

2. can be computed as the total income paid by firms, but not as expenditures on final goods and services

3. can be computed as expenditures on final goods and services, but not as the total income paid by firms

4. cannot be computed as either total income paid by firms or expenditures on final goods and services

lavenderreindeer626

Which phrase defines gross domestic product (GDP)?

A. the difference of expenditures made importing goods and income earned from exporting goods.
B. the total monetary value of all the finished goods and services produced in a country in a given period.
C. the economic value of the professional skills and knowledge used in the production of goods and services.
D. the total investments made for the manufacture of domestic products and services in one year.