If real GDP decreases from Year 1 to Year 2, we can conclude that (a) production levels are lower in Y ear 2 than in Y ear 1. (b) price levels are lower in Y ear 2 than in Y ear 1. (c) there is less unemployment in Year 2 than in Year 1.
(b) wages, private consumption, gross private domestic investment, and imports. (c) private consumption, government consumption and gross investment, transfer payments, and net exports.
One problem of incorporating the government sector into GDP is that (a) we must include transfer payments, so double counting occurs. (b) some government production, such as national defense, is not sold. (c) taxes reduce consumption and investment expenditures. (d) the government adds nothing to the value of production. B
Which of the following would be included in this year's GDP? consumption, investment, government consumption and gross investment, and net exports.
The expenditure approach to calculating gross domestic product (GDP) takes into account the sum of all final goods and services purchased in an economy over a set period of time. That includes all consumer spending, government spending, business investment spending, and net exports.
Which of the following are included or excluded in this year's GDP? a. Excluded: the services of a commercial painter in painting the family home is not included.
When using the expenditures approach to calculating GDP the components are consumption, investment, government spending, exports, and imports.
The Problem of Double CountingWhat is counted in GDPWhat is not included in GDPConsumptionIntermediate goodsBusiness investmentTransfer payments and non-market activitiesGovernment spending on goods and servicesUsed goodsNet exportsIllegal goods
a. The painter painting the family home is excluded from GDP since the services offered are of his benefits...
Which of the following would be included in this year's GDP? consumption, investment, government consumption and gross investment, and net exports. You just studied 33 terms!
If a paint manufacturer manufactures paints, it is not included in calculating GDP if it is not produced in the period for which GDP is calculated. The government-provided goods and services are part of the nominal Gross Domestic Product calculation.