Macro Homework 5 – Flashcards

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question
During a business cycle expansion, total production ________ and total employment ________.
answer
increases, increases
question
Which of the following is not directly counted in GDP?
answer
intermediate goods
question
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?
answer
$7,400
question
The nominal GDP of the U.S. in 2015 was approximately $17.3 trillion. This means that
answer
-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
question
Investment, as defined by economists, would include the purchase of a
answer
computer by an accounting firm
question
The purchase by a foreign government of an airplane produced in the United States is included in U.S.
answer
net exports
question
Gross Domestic Product in the economy is measured by the
answer
dollar value of all final goods and services produced in the economy
question
Which of the following are not considered part of government purchases?
answer
Welfare Benefits
question
Gross domestic product understates the total production of final goods and services because of the omission of
answer
household production
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