Which of these statements is not true when we discuss GDP calculation? a. GDP includes earnings of both the citizens and non-citizens but are residing inside the country. b. Incomes made by a citizen outside of his country will be included in the calculation of GDP c. Expenditures of citizens and non-citizens made inside the country is included in GDP calculation d. Incomes made by expatriates are included in the calculation of GDP

Which of these statements is not true when we discuss GDP calculation? a. GDP includes earnings of both the citizens and non-citizens but are residing inside the country. b. Incomes made by a citizen outside of his country will be included in the calculation of GDP c. Expenditures of citizens and non-citizens made inside the country is included in GDP calculation d. Incomes made by expatriates are included in the calculation of GDP

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter7: Taking The Nation's Economic Pulse

Section: Chapter Questions

Problem 13CQ

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Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. The quality of goods available to consumers Funds spent by city governments to renovate their buildings The loss of enjoyment people incur when scenic land is converted to commercial use The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the purchase of wood from Brazil causes in US GDP.