FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Measuring Domestic Output and National Income

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

Historically, real GDP has increased less rapidly than nominal GDP because

A) price indices have not reflected improvements in product quality.
B) the general price level has increased.
C) technological progress has resulted in more efficient production.
D) the general price level has decreased.

E) A) and D)
F) B) and C)

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

$\begin{array} { | l | r | } \hline \text { Gross Private Domestic Investment } & \$ 1,593 \\\hline \text { Personal Taxes } & 1,113 \\\hline \text { Transfer Payments } & 1,683 \\\hline \text { Taxes on Production and Imports } & 695 \\\hline \text { Corporate Income Taxes } & 213 \\\hline \text { Personal Consumption Expenditures } & 7,304 \\\hline \text { Consumption of Fixed Capital } & 1,393 \\\hline \text { US Exports } & 1,059 \\\hline \text { Dividends } & 434 \\\hline \text { Government Purchases } & 1,973 \\\hline \text { Net Foreign Factor Income } & 10 \\\hline \text { Undistributed Corporate Profits } & 141 \\\hline \text { Social Security Contributions } & 748 \\\hline \text { US Imports } & 1,483 \\\hline \text { Statistical Discrepancy } & 50 \\\hline\end{array}$ Refer to the accompanying national income data (in billions of dollars) . Corporate pro?ts are equal to

A) $442 billion.
B) $532 billion.
C) $621 billion.
D) $788 billion.

E) None of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

$\begin{array} { | l | r | } \hline \text { Gross Private Domestic Investment } & \$ 1,593 \\\hline \text { Personal Taxes } & 1,113 \\\hline \text { Transfer Payments } & 1,683 \\\hline \text { Taxes on Production and Imports } & 695 \\\hline \text { Corporate Income Taxes } & 213 \\\hline \text { Personal Consumption Expenditures } & 7,304 \\\hline \text { Consumption of Fixed Capital } & 1,393 \\\hline \text { US Exports } & 1,059 \\\hline \text { Dividends } & 434 \\\hline \text { Government Purchases } & 1,973 \\\hline \text { Net Foreign Factor Income } & 10 \\\hline \text { Undistributed Corporate Profits } & 141 \\\hline \text { Social Security Contributions } & 748 \\\hline \text { US Imports } & 1,483 \\\hline \text { Statistical Discrepancy } & 50 \\\hline\end{array}$ Refer to the accompanying national income data (in billions of dollars) . Net exports are equal to

During the 2007-2009 recession,

"Corporate profits" in the national income accounts consists of the following, except

Government purchases in national income accounts would include payments for

$\begin{array} { | c | c | c | } \hline \text { Year } & \text { Nominal GDP } & \text { Price Index } \\\hline 1 & \$ 550 & \$ 140 \\\hline 2 & 560 & 135 \\\hline 3 & 576 & 120 \\\hline 4 & 586 & 117 \\\hline 5 & 604 & 108 \\\hline\end{array}$ The economy described in the table has experienced a

In calculating the GDP, national income accountants

$\begin{array} { | l | r | } \hline \text { Personal Consumption Expenditures } & \$ 4,500 \\\hline \text { Consumption of Fixed Capital } & 150 \\\hline \text { Gross Private Domestic Investment } & 800 \\\hline \text { Government Purchases } & 950 \\\hline \text { Exports } & 65 \\\hline \text { Imports } & 85 \\\hline\end{array}$ Refer to the accompanying data about a hypothetical economy (in billions of dollars) . How much are net exports of this economy?

The National Income and Product Accounts (NIPA) help economists and policymakers to

Which of the following best defines national income?

$\begin{array} { | l | r | } \hline \text { Personal Taxes } & \$ 23 \\\hline \text { Net Private Domestic Investment } & 33 \\\hline \text { Net Exports } & 6 \\\hline \text { National Income } & 278 \\\hline \text { U.S. Exports } & 20 \\\hline \text { Gross Private Domestic Investment } & 56 \\\hline \text { Disposable Income } & 220 \\\hline \text { Taxes on Production and Imports } & 32 \\\hline \text { Undistributed Corporate Profits } & 15 \\\hline \text { Proprietors' Income } & 45 \\\hline \text { Net Foreign Factor Income } & 0 \\\hline \text { Statistical Discrepancy } & 0 \\\hline\end{array}$ Refer to the accompanying national income data. All ?gures are in billions of dollars. Personal income is

$\begin{array} { | l | c | } \hline \text { Personal Consumption Expenditures } & \$ 400 \\\hline \text { Government Purchases } & 128 \\\hline \text { Gross Private Domestic Investment } & 88 \\\hline \text { Net Exports } & 7 \\\hline \text { Net Foreign Factor Income } & 0 \\\hline \text { Consumption of Fixed Capital } & 43 \\\hline \text { Taxes on Production and Imports } & 50 \\\hline \text { Compensation of Employees } & 369 \\\hline \text { Rents } & 12 \\\hline \text { Interest } & 15 \\\hline \text { Proprietors' Income } & 52 \\\hline \text { Corporate Income Taxes } & 36 \\\hline \text { Dividends } & 24 \\\hline \text { Undistributed Corporate Profits } & 22 \\\hline \text { Statistical Discrepancy } & 0 \\\hline\end{array}$ Refer to the accompanying national income data for the economy. All ?gures are in billions of dollars. The national income is

$\begin{array} { | l | c | } \hline \text { Personal Consumption Expenditures } & \$ 400 \\\hline \text { Government Purchases } & 128 \\\hline \text { Gross Private Domestic Investment } & 88 \\\hline \text { Net Exports } & 7 \\\hline \text { Net Foreign Factor Income } & 0 \\\hline \text { Consumption of Fixed Capital } & 43 \\\hline \text { Taxes on Production and Imports } & 50 \\\hline \text { Compensation of Employees } & 369 \\\hline \text { Rents } & 12 \\\hline \text { Interest } & 15 \\\hline \text { Proprietors' Income } & 52 \\\hline \text { Corporate Income Taxes } & 36 \\\hline \text { Dividends } & 24 \\\hline \text { Undistributed Corporate Profits } & 22 \\\hline \text { Statistical Discrepancy } & 0 \\\hline\end{array}$ Refer to the accompanying national income data for the economy. All ?gures are in billions of dollars. Net domestic product is

$\begin{array} { | c | c | c | } \hline \text { Year } & \text { Units of Output } & \text { Price Per Unit } \\\hline 1 & 20 & \$ 4 \\\hline 2 & 25 & 4 \\\hline 3 & 30 & 6 \\\hline\end{array}$ Assume an economy that is producing only one product. Output and price data for a three-year period are shown in the table. If year 2 is chosen as the base year, real GDP for year 1 is

$\begin{array} { | c | c | c | } \hline \text { Year } & \text { Nominal GDP } & \text { Price Index } \\\hline 1 & \$ 550 & \$ 140 \\\hline 2 & 560 & 135 \\\hline 3 & 576 & 120 \\\hline 4 & 586 & 117 \\\hline 5 & 604 & 108 \\\hline\end{array}$ In the economy described in the table, real GDP for year 3 is

The value added of a firm is the market value of

Suppose nominal GDP in year 1 was $100 billion and in year 2 it was $260 billion. The general price index in year 1 was 100 and in year 2 it was 180. Real GDP in year 2 was

The U.S. government agency responsible for compiling the national income accounts is the

The amount of after-tax income received by households is measured by