Macro Homework 5 – Flashcards
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During a business cycle expansion, total production ________ and total employment ________.
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increases, increases
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Which of the following is not directly counted in GDP?
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intermediate goods
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Product Quantity Price Shoes 40 $60.00 DVDs 100 18.00 Tomatoes 2,000 1.00 Ketchup 300 4.00 What is the nominal GDP?
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$7,400
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The nominal GDP of the U.S. in 2015 was approximately $17.3 trillion. This means that
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-the value of output in 2015 was around $17.3 trillion -total income in 2015 was around $17.3 trillion -total spending in 2015 was around $17.3 trillion
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Investment, as defined by economists, would include the purchase of a
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computer by an accounting firm
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The purchase by a foreign government of an airplane produced in the United States is included in U.S.
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net exports
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Gross Domestic Product in the economy is measured by the
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dollar value of all final goods and services produced in the economy
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Which of the following are not considered part of government purchases?
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Welfare Benefits
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Gross domestic product understates the total production of final goods and services because of the omission of
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household production
