Of the following, which is correct? O Nominal GDP does not change when the production of goods and services increases. O Nominal GDP is not affected by changes in prices of goods and services. O Real GDP changes only when the prices of goods and services really change. O Nominal GDP increases when the prices of goods and services increase.

Of the following, which is correct? O Nominal GDP does not change when the production of goods and services increases. O Nominal GDP is not affected by changes in prices of goods and services. O Real GDP changes only when the prices of goods and services really change. O Nominal GDP increases when the prices of goods and services increase.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter19: Measuring Economic Performance

Section: Chapter Questions

Problem 1P

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Which of the following adds to US GDP? O AI chop down a tree on my property and build a table. A similar table, sold at retail, would get a price of $800. O B. Awake Coffee, a U.S. coffee company, produces a latte in Minneapolis, MN and sells the latte to a customer immediately. O C. All of these answers add to G.D.P. for the United States. O D. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Chicago. It sells the corn syrup to Crunchy's for use in the production of Hyperactive Crunch. O E. Roadway Motors, a U.S. auto company, produces a car at a plant in Germany. The car is then imported into the U.S.
Which of the following is not included in gdp?
Which of the following correctly describes GDP? I. GDP is a flow variable. II. GDP is the value of the production of an individual firm's goods and services. III. GDP can be calculated using the expenditure approach or the income approach. O Ill only. O Il and III. O I and III. O I only.
Please give detailed answer
Ford, an American-owned company, operates a factory in Mexico. The value of the output produced in this factory is counted O in neither U.S. nor Mexico GDP. O in both U.S. and Mexico GDP. O only in Mexico GDP O only in U.S. GDP.
Which of the following is an example of (economic) investment I, as defined in GDP accounting? O a. The federal government spends on an early child development program to improve long term health outcomes of young children. O b. A used car is sold to a firm for business use. O C. You purchase bonds sold by the government of British Columbia. O d. Spending on construction of new residential buildings.
Q15
Which of the following transactions would not be included in the calculation of GDP on the expenditure side? O A. The purchase of a plumber's services by a household. OB. The purchase of an airplane by Air Canada. O C. The purchase of ground beef by McDonald's. D. The purchase of a new boat by a household.
A US citizen who is working in Singapore remits $10,000 to his family in the US. The $10,000 is O part of US GNE but not US GDP. O part of US GNDI but not US GDP. O part of US GNE, GDP and GNI.
Which of the following is NOT part of GDP? O The purchase of new homes by consumers. O Purchases of new capital equipment by BMW. O Expenditures by the government for national defense. O Social security payments made to the elderly.
QUESTION 12 In the expenditure approach to GDP, which of the following is excluded from measurements of GDP? O A. Government payments for goods produced by privately-owned firms O B. Government payments for goods produced by firms owned by state or local govermments C. Government transfers to households because of Covid-19 O D. All government payments are included in GDP
If nominal GDP is $900 and GDP deflator is 120, what is the real GDP in the economy? O a. 1350 Ob. 750 Oc. 850