1. To make the income approach to the measurement of national output equal to the expenditure approach A) indirect taxes are added, and subsidies subtracted B) any unintended increase in inventories is subtracted from the sum of other expenditures C) indirect taxes are subtracted, and subsidies added. D) The wages and salaries paid to the defence forces are added to the other income components. 2. Which of the following is correct concerning the business cycle? A) A contraction is a period during which real GDP increases or aggregate economic activity increases. B) An expansion is a period during which real GDP decreases or aggregate economic activity decreases. C) A severe contraction, in which economic growth as measured by real GDP is negative for at least two quarters, is called a Recession. D) A peak is reached just after the economy reaches a contraction of activity 3. Which of the following is incorrect? A) Aggregate Demand is the demand for and hence money spent on all goods and services by all the sectors in the economy. B) Aggregate demand is the same as (planned) aggregate expenditure. C) Aggregate Supply is the supply of all goods and services by all the firms in the economy. D) Aggregate supply depends on changes in interest rate but not on changes in exchang rates 4. The following schedule provides data for the country of Haha land. Year GDP (% change) Unemployment rate (%) 2016 8.1 2017 -1.25 9.2 2018 -2.25 12 2019 2 2020 5 2

What is economic GDP?

Should we continue to measure GDP as we do now?

U.S. macroeconomic data are among the best in the world. Given what you learned in the Clear It Up "How do statisticians measure GDP?", does this surprise you, or does this simply reflect the complexity of a modern economy? Suppose GDP was modified to include the value - positive or negative - of changes in environmental quality. How could this be done accurately?

Examples of GDP and GNP

Define GDP growth in an economy.

If nominal GDP is $15000 million and real GDP is 12,000 million Find GDP deflator

what problem the value added approach to measuring GDP solved

Why could calculating GDP each year using current prices overstate or understate changes in actual output year to year?

What is the U.S. GDP for the 1st quarter of 2017?