Untitled Flashcards Set

Consumption in the United States is about ___ of GDP, and it moves relatively little over time. 68%

The demand measure of GDP accounting adds together: consumption, investment, government purchases, and trade balance.

Which of the following are most likely classified by economists as consumer durable goods? Automobiles, furniture

Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then: imports exceed exports by $50 billion. 

The value of what businesses provide to other businesses is captured in the final products at the end of the ___ chain. Production

In order to avoid double counting, statisticians just count the ___. Final goods and services.

Which of the following is included in the calculated Gross Domestic Product? A local ice cream store sells $17,000 worth of cones and sundaes on July 1.

Which of the following is not included in GDP? Cash income paid to a day laborer that is not reported to the tax authorities.

___ are now the largest single component of the supply side of GDP, representing over half of GDP. Services

To compare the GDP of two different countries with different currencies, it is necessary to use ___. An exchange rate

GDP does not directly include: the value of intermediate goods sold during a period.

Investment (I) includes: the amount spent on new factories and machinery.

A business cycle reflects changes in economic activity, particularly real GDP. THe stages of a business cycle are: expansion, peak, recession, trough

Which of the following is true? The expansions and contractions of real world business cycles last varying lengths of time and often differ in magnitude.

If imports exceed exports, as in recent years, then ___ exists. A trade deficit

___, which can be approximated by the growth of gross domestic product, ultimately determines the prevailing standard of living in a country. Economic growth

Once every ___, the Census Bureau does a comprehensive survey of housing and residential finance. 10 years

The difference between nominal GDP and real GDP is: real GDP adjusts for inflation