ECO 1104 Lecture Notes - Lecture 5: Macroeconomics, Dollar Sign, Credit Union

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yellowmule951

12 Oct 2018

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It is the best measu(cid:396)e(cid:373)e(cid:374)t of a so(cid:272)iet(cid:455)"s (cid:449)ell (cid:271)ei(cid:374)g. Because every transaction has two parties, the buyer and the seller. This is according to the market value of items: (cid:862) of all (cid:863, gdp tries to comprehensive. Includes all items produced and sold legally in the market, including rents and housing: gdp excludes some items because it is hard to measure them. Pi(cid:396)ated ite(cid:373)s, illegal ite(cid:373)s (cid:894)k(cid:374)o(cid:272)k off"s a(cid:374)d d(cid:396)ugs(cid:895), ite(cid:373)s p(cid:396)odu(cid:272)ed a(cid:374)d (cid:272)o(cid:374)su(cid:373)ed at home that never make it to the marketplace: fi(cid:374)al . Gdp only includes the value of final goods. Items produced are recorded domestically: ex) when british citizen works in canada, his production is part of canadian gdp. Their gdp of a quarter is multiplies by 4 called seasonal adjustments. Can be compared easily with the annual figures of. I = investments: g = government purchases, nx = net exports, consumption.

Related Questions

Which of the following statements about GDP is correct

A) Money continuously flows from households to firms and then back to households, and GDP measures this flow of money

B) GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services.

C) While not perfect, GDP is generally regarded as the best single measure of a society’s economic well-being.

D) All of the above are correct.

emeraldmarten620

Gross Domestic Product (GDP) only measures the value of marketed goods and services for a country during a given period of time.

Is the GDP measure underestimating or overestimating national production and total income in the economy? Why?

What are the limitations of the GDP in measuring total output and national welfare? What products (services) are excluded from the GDP computation?

ambergnu461

Question 1 Gross domestic product (GDP) measures the economy's production of

A) final goods and services.

B) intermediate goods.

C) consumer goods and services.

D) capital goods.

Question 2 Because GDP is measured in dollars per year, GDP is called a

A) stock.

B) flow.

C) cycle.

D) chain.

Question 3 Which of the following would not be included in the gross private domestic investment (I) category of GDP?

A) A retailer's additions to its inventories.

B) A bakery's purchase of a new oven.

C) A trader's purchase on NASDAQ stocks.

D) Newly built residential construction.

Question 4 Which of the following government payments would be included in the government consumption expenditures and gross investment (G) category of GDP?

A) A firefighter's monthly paycheck.

B) A retired grandmother's Social Security check.

C) A retired colonel's veteran's benefits.

D) A laid-off auto worker's unemployment conpensation check.

Question 5 The largest component in the income approach to measuring GDP is

A) compensation of employees.

B) rents.

C) profits.

D) net interest.

Question 6 Which approach to calculating GDP attempts to measure employee compensation, rents, profits, and net interest?

A) The circular-flow approach.

B) The product-market approach.

C) The income approach.

D) The expenditure approach.

Question 7 In recent years, people have benefited from greater amounts of leisure time. This trend

A) has caused GDP to rise.

B) has caused GDP to fall.

C) made GDP fluctuate randomly.

D) is not accounted for in the GDP statistic.

Question 8 National income (NI) is calculated by adjusting GDP for

A) depreciation of capital.

B) investment and net exports.

C) Social Security insurance contributions and transfer payments.

D) corporate and personal income taxes.

Question 9 If an economy's real GDP has increased, we can conclude that the economy

A) is inflationary.

B) has increased its production.

C) suffers from recession.

D) needs a tax cut.

Question 10 In the circular flow model, investment, government spending, and exports are classified as

A) injections.

B) leakages.

C) transfers.

D) consumption expenditures.

ECO 1104 Lecture Notes - Lecture 5: Macroeconomics, Dollar Sign, Credit Union

ECO 1104 Full Course Notes

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