1. Nominal GDP is the value of final goods and services A) at the prices of that year. B) at the prices of the immediately previous year. C) at the prices of a base year. D) produced in foreign countries but consumed in the domestic country.
1. Nominal
A) at the
B) at the prices of the immediately previous year.
C) at the prices of a base year.
D) produced in foreign countries but consumed in the domestic country.
2. which of the following, which is correct?
A) Nominal GDP does not change when the production of goods and services increases.
B) Nominal GDP is not affected by changes in prices of goods and services.
C) Nominal GDP increases when the prices of goods and services increase.
D) Real GDP changes only when the prices of goods and services really change.
|
Item |
Billions of dollars |
|
Compensation of employees |
80 |
|
Net interest and rental income |
30 |
|
Corporate profits |
10 |
|
Proprietor's income |
20 |
3. Use the information in the table above plus the fact that indirect taxes less subsidies are $10 billion and
A) $180 billion
B) $150 billion
C) $140 billion
D) $130 billion
4. The income approach to measuring GDP sums together
A) compensation of employees, rental income, corporate profits, net interest, proprietors' income, subsidies paid by the government, indirect taxes paid, and depreciation.
B) compensation of employees, rental income, corporate profits, net interest, proprietors' income, indirect taxes paid, and depreciation and subtracts subsidies paid by the government.
C) the sales of each firm in the economy.
D) the costs of each firm in the economy and then subtract indirect business taxes and depreciation.
5.
|
Item |
Billions of dollars |
|
Government expenditure on goods and services |
250 |
|
Compensation of employees |
1,675 |
|
Gross private domestic investment |
325 |
|
Rental income |
20 |
|
Personal consumption expenditures |
1425 |
|
Net interest |
40 |
|
Net exports of goods and services |
100 |
|
Indirect business taxes and depreciation |
300 |
The above table shows some (but not all)
- A) $2100
- B) $1850
- C) $2000
- D) $2050
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