following would be included in GDP? payment of the monthly telephone bill by Mr. Laconic 4. Consumption in the expenditures approach to calculating GDP includes: purchases of medical services at the local clinic 5. Which of the following is not considered a component of investment when calculating GDP? purchases of corporate stock 6. Which of the following is not included in GDP? interest payments on the national debt 7. Which of the following would not increase U.S. GDP? increased shipments of Ghanian
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Approach Ways of Measuring GNP Gross National Product (GNP) is the sum of all the final market values of goods and servicesin a given economy at a given period of time. This is the quantitative summary of all transactions of goods and services transacted within the economy in a year. It measures only legal and registered transaction. Non produced transactions are not included such as second hand sale‚ transfer of payments and buy and sell. Gross domestic product (GDP) is the market value of all
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was Real GDP for 2009? The Real GDP for 2009 was 13‚973.7 (NIPA Tables 1.1.5‚ 2012) a. What does GDP tell us? The GDP gives information regarding the country’s economy in regards to total money value on all final goods and services that are produced in the economy over any given time frame - annually or quarterly. Real GDP accounts for price changes especially with inflation whereas nominal GDP does not. b. How did GDP change from 2008? In the first and second quarter‚ GDP increased
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product (GDP) is the total final value of goods and services created by factors of production available within a nation in one year. The Value of GDP does not take into account whether the factors of production are owned by local citizens or by citizens of other nations. Final goods are goods that are ready to be used by the end user. Intermediate goods are goods that are used in the production of final goods. Therefore‚ the values of intermediate goods are excluded from the calculation of GDP‚ as the
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’Exchange Rate’ The price of a nation’s currency in terms of another currency. An exchange rate thus has two components‚ the domestic currency and a foreign currency‚ and can be quoted either directly or indirectly. In a direct quotation‚ the price of a unit of foreign currency is expressed in terms of the domestic currency. In an indirect quotation‚ the price of a unit of domestic currency is expressed in terms of the foreign currency. An exchange rate that does not have the domestic currency
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EC 601 Fall 2011 Dr. Esin Cakan REVIEW QUESTIONS FOR CHP 19 GDP EC 133-05‚ Fall 08 QUESTIONS FOR CHP 10-12‚ SAMPLE EXAM I 10/21/2011 1) Gross domestic product serves as a measure of two things: a. the total spending of everyone in the economy and the total saving of everyone in the economy. b. the total income of everyone in the economy and the total expenditure on the nation’s output of goods and services. c. the value of the nation’s output of goods and services for domestic citizens and
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Expenditures Approach to Calculating GDP (weight 25% of the assignment grade) Complete the following exercise Visit the Bureau of Economic Analysis Web site at www.bea.gov In U.S. Economic Accounts under National click on Gross Domestic Product (GDP)‚ then Interactive Tables: GDP and the National Income and Product Account (NIPA) Historical Tables‚ click “Begin using the data”‚ and use Section 1 - Tables 1.1.5 and 1.1.6 to identify the GDP (nominal GDP) and real GDP for the past four quarters. a) Present
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Gross National Product GNP Top 10 (2004) (currency exchange rate) Country GNP ($ mill) 1 United States 10‚945‚792 2 Japan 4‚389‚791 3 Germany 2‚084‚631 4 United Kingdom 1‚680‚300 5 France 1‚523‚025 6 China 1‚417‚301 7 Italy 1‚242‚978 8 Canada 756‚770 9 Spain 698‚208 10 Mexico 637‚159 Gross National Product (GNP) is the total value of final goods and services produced in a year by domestically owned factors of production. Final goods are goods that are ultimately consumed
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in income per capita compared to other East and Southern Asian countries. The implementation resulted to rapid growth of manufacturing net domestic product (NDP)‚ averaging 12 percent growth per annum in real terms contributory to an average 7.7 percent growth in the Gross National Product (GNP). In the second half of 1950’s‚ the real GNP growth was down to 4.9 percent. In respond to this‚ the government took actions to oppose the declining economy by devaluating peso‚ abolishing import control
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2 Section: 2.1 3. The Bigdrill company drills for oil‚ which it sells for $200 million to the Bigoil company to be made into gas. The Bigoil company’s gas is sold for a total of $600 million. What is the total contribution to the country’s GDP from companies Bigdrill and Bigoil? (a) $200 million (b) $400 million (c) $600 million (d) $800 million Answer: C Level of difficulty: 2 Section: 2.1 Chapter 2 The Measurement and Structure of the National Economy 15 4. Sam’s
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