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Central Texas College The Economy Today 12th Edition

Real GDP is the:

value of output measured in constant prices

An economy's production possibilities are most likely to expand if:

Gross investment is greater than depreciation

An increase in the dollar value of output produced

Between 1960 and 1970 real GDP declined but nomial GDP continued to rise. The increase in nominal GDP was due to:

National-income accounting is defined as the:

Measurement of aggregate economic activity.

Which of the following types of government spending is included in the calculation of GDP?

Federal, state and local government spending on goods and services only

Inflation

During the 1980-1990 time periods, real GDP was constant but nominal GDP was increased. This can be explained by

If nominal GDP was $11,500 billion in 2003 and the price level in 2003 was 111.6, then real GDP would have been approximately:

$10,305 billion

Suppose iPhones cost consumers $200 and USB cables cost consumers $25. What contribution does the production of 2000 iPhones and 1200 USB cables make to GDP?

$430,000

Average price levels decreased

During the period between the early 1970s and 1980, real GDP grew at a faster rate than nominal GDP. This is an indication that:

A nation's GDP is:

A) C + I + G + (X - IM).

Ceteris paribus, if imports increase in any given year:

GDP will decrease

Assume nominal GDP is $10,000 billion in period 1 and $15,000 billion in period 2. If prices in period 2 are twice as high as in period 1, real GDP in peroid 2 is:

7,500 (7.5billion)
10bn(1.0) = 10bn; X(2.0)=15bn -> X = 15bn/2.0 = 7.5bn

...

Net domestic product is:

Which of the following typically purchases the most goods and services in the U.S. economy?

Households

To avoid counting the same output more than once the calculation of GDP includes:

Only the value of final goods

The sum of the value added:

Is one way to compute the GDP

$6.810 billion

Gross domestic product is:

Suppose Blu-Ray players cost consumers $300 and BLU-Ray discs cost consumers $30. What contribution does the production of 250 Blu-Ray players and 3000 Blu-Ray discs make to the GDP?

$165,000

A computer manufacturer sells laptops to retail stores for $450 each. If the manufacturer pays $200 for the components in each laptop and $75 in wages, the value added to each computer by manufacturing is:

$175

The national-income aggregate calculated by subtracting depreciaiton from GDP is known as:

Net domestic product

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