GDP and economic growth

When the value of nominal GDP increases from one year to the next, we know that one or two things must have happened during that time:

The nation produced more goods and services and/or prices rose for goods and services.

Gross Domestic Product is the market value of all ________ produced within a country in a given period of time.

final goods and services

Gross Domestic Product equals

Y = C + I + G + NX.

Adding wages, interest, rent, and profits yields

gross domestic product at factor cost.

Gross Domestic Product is equal to the market value of all the final goods and services ________ in a given period of time.

produced within a country

Which of the following is NOT part of the income used in the income approach to measuring GDP?

taxes paid by persons

If we use GDP to measure our standard of living, then our procedure is

inaccurate because our standard of living does not depend only on goods and services.

Spending on financial assets ________ counted as part of GDP ________.

are not; because their purchase is not spending on goods or services

In 2009 in the United States, net domestic product at factor cost was $11,091 billion. Additionally, rent was $2,000 billion, profits were $1,000 billion, and interest was $358 billion. Hence wages were

$7,733 billion.

U.S. real GDP

excludes the value of underground production and leisure time.

Even though it is not a perfect measure, economists can use real GDP to
i. compare how the value of the goods and services produced in China have changed
over the past 10 years.
ii. look at the length of recessions and expansions in the United States.
iii. compare the standard of living in China versus the standard of living in Vietnam.

i, ii and iii

According to the income approach to measuring GDP, the largest income category is

wages

The difference between nominal GDP and real GDP is

the prices used in their calculations.

Investment is the expenditure done by

firms

U.S. net exports include

sales of Hollywood movies to the rest of the world.

The Rule of ________ can be used to calculate the number of years that it takes for the level of a variable to ________.

70; double

If a country experiences a real GDP growth rate of 6 percent, real GDP will double in

11.67 years

Economic growth is a sustained expansion of production possibilities, as measured by the increase in ________ over time.

real GDP

Suppose France's real GDP grew from $750 billion in 2010 to $821 billion in 2011. What was the growth rate of France's real GDP?

9.5 %

In India last year, the growth rate of real GDP was 3.5 percent and the population grew from 1,000 million people to 1,100 million. Real GDP per person

decreased by 6.5 %