Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
18 Cards in this Set
- Front
- Back
|
Gross domestic product is defined as the monetary value of what? |
All final goods and services produced in a country in one year |
|
|
Which of the following would not be included in GDP? |
Firewood received by a music teacher in return for violin lessons |
|
|
Which of the following would be included in GDP? |
The services of a house painter |
|
|
NFFI, the difference between GDP and GNP, simply stated in terms of the US and the rest of the world is? |
The difference between what the foreigners made in the US versus what the Americans made a broad |
|
|
Typing lessons taken at the local business college would not be included in GDP true or false? |
False |
|
|
Net foreign factor income equals -25 means that the US resources earned more in other countries than others earned in the US, true or false? |
True |
|
|
In measuring GDP only final goods and services are included: if intermediate goods and services were included, the accountant would be double counting or overestimating the value of the GDP, true or false |
True |
|
|
True or false GDP includes only the value of final goods? |
True |
|
|
What is consumption? |
Spending by households on goods and services with the exception of purchases a new housing |
|
|
What's investment? |
Spending on business capital, residential capital, and inventories |
|
|
What are government purchases? |
Spending on goods and services by local, state, and federal governments |
|
|
Spending on domestically produced goods by foreigners/exports minus spending on foreign goods by domestic residence/imports |
Spending on domestically produced goods by foreigners/exports minus spending on foreign goods by domestic residence/imports |
|
|
What is the nominal GDP? |
The production of goods and services valued at current prices. Meaning this is not adjusted for inflation |
|
|
What is real GDP? |
The production of goods and services valued at constant prices, meaning adjusted for inflation |
|
|
What is the GDP deflator? |
A measure of the price level calculated as the ratio of nominal GDP to real GDP times 100 |
|
|
What is inflation rate? |
The percentage change in some measure of the price level from one period to the next. |
|
|
What are some things not included in the GDP? |
Anything illegal, intermediate goods, barter, used goods, value of homemaker, leisure, underground economy, externalities/environmental hazards, transfer payments/unemployment |
|
|
What are the two methods to calculate GDP? |
1. The expenditure approach/EA 2. The income approach/IA |
