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19 Terms
1
Consumption in the United States is about ___ of GDP.
68%
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2
What four components are added together in the demand measure of GDP accounting?
Consumption, investment, government purchases, and trade balance.
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3
Which items are most likely classified as consumer durable goods?
Automobiles, furniture.
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4
If Gross Domestic Product equals $1.2 trillion and consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, what is the trade balance?
Imports exceed exports by $50 billion.
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5
The value of what businesses provide to other businesses is captured in the final products at the end of the ___ chain.
Production.
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6
To avoid double counting in GDP calculation, statisticians count the ___.
Final goods and services.
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7
Which transaction is included in the calculated Gross Domestic Product?
A local ice cream store sells $17,000 worth of cones and sundaes on July 1.
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8
What is not included in GDP?
Cash income paid to a day laborer that is not reported to the tax authorities.
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9
___ are now the largest single component of the supply side of GDP, representing over half of GDP.
Services.
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10
To compare the GDP of two different countries with different currencies, it is necessary to use ___.
An exchange rate.
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11
What does GDP not directly include?
The value of intermediate goods sold during a period.
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12
Investment (I) includes what?
The amount spent on new factories and machinery.
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13
What does a business cycle reflect?
Changes in economic activity, particularly real GDP.
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14
What are the stages of a business cycle?
Expansion, peak, recession, trough.
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15
What is true regarding real world business cycles?
The expansions and contractions last varying lengths of time and often differ in magnitude.
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16
If imports exceed exports, what exists?
A trade deficit.
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17
___ determines the prevailing standard of living in a country.
Economic growth.
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18
Once every ___, the Census Bureau conducts a comprehensive survey of housing and residential finance.
10 years.
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19
What is the difference between nominal GDP and real GDP?
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