The consumer price index (CPI) is not used to convert nominal GDP to real GDP because the CPI calculation has measurement errors that are avoided in the real GDP calculation. the CPI includes prices of imports which consumers buy which are not relevant to GDP. the CPI does not track government spending, business investment or net exports. All of the answers are correct.

The consumer price index (CPI) is not used to convert nominal GDP to real GDP because the CPI calculation has measurement errors that are avoided in the real GDP calculation. the CPI includes prices of imports which consumers buy which are not relevant to GDP. the CPI does not track government spending, business investment or net exports. All of the answers are correct.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1) How do the following events influence Turkish GDP? Mothers living in Turkey take care of their pre-school child in their own home. You buy a new car from a dealer for 80,000 TL. You sell your father’s used car to a dealer for 70,000 TL. You sell your old car to a dealer for 60,000 TL. The dealer repaints it and sells it to a customer for 80,000 TL A Japanese company builds a factory in Düzce. (If this affects GDP, is it the Japanese or the Turkish GDP?) A German company buys stock in a Turkish company. An earthquake destroys many structures in Gebze industrial zone. The structures are not rebuilt this year. An earthquake destroys much of Gölcük and within a short time the town is rebuilt as it was before.
GDP: Is a less- perfect measure of social well-being because it does not include exports and imports. Is the dollar value of all goods and services produced outside the boarders of a nation. Is the dollar value of all goods and services produced within the boards of a nation. Includes intermediate and final goods and services. All answers are correct
Using the formula GDP = National Income + Depreciation + (indirect taxes – subsidies) + Net factor payments to the rest of the world, calculate GDP using the Income Approach. (all figures are in billions of dollars):
Although GDP is a reasonably good measure of a nation's economic well-being, it does not necessarily include all factors that contribute to it. Which of the following factors are not accounted for in calculations of the GDP of Canada? Check all that apply. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government The parts of a car manufactured in Canada that are produced in the United States The variety of goods available to consumers The loss of enjoyment people suffer when scenic land is converted to commercial use Federal government paycheques to soldiers
If Gdp deflator is equal at 120 it means that : 1- stagflation 2- deflation 3- inflation 4- stability
Which of the following transactions counts towards Australia's GDP? (All activities take place in Australia.) a) Aiko buys a new fridge to replace an old one damaged in the flood. b) Boaz volunteers to clean up the mud after a flood. c) Centrelink (Australian government welfare services) makes a flood relief payment to residents of Lismore (a town in Australia). d) All of the above.
The consumer price index: Group of answer choices uses a fixed market basket set in the base year for all subsequent years. measures changes in the prices of a market basket of some 50,000 goods and services. is adjusted annually for changes in consumer spending patterns. is also called the GDP price index.
Answer the question on the basis of the following information: Year 1 12345 2 3 Nominal GDP In the economy above: Multiple Choice O $550 560 576 586 604 O O Price Index 140 135 120 117 108 the growth of nominal GDP understates the growth of real GDP. nominal and real GDP are growing at the same rate. the growth of nominal GDP overstates the growth of real GDP. the price level is rising faster than nominal GDP.
Gross Domestic Product is the sum total of all the goods and ______________, produced and __________, within a country’s borders, for a given period, calculated in a monetary value, which are allocated to the ______________ purchaser. The expenditure approach is the sum of all purchases in the categories of consumption, ______________, government, and net exports on final goods and services for a given period. The largest component of the expenditure approach is ______________ purchases of ______________ goods. The income approach is the sum of all incomes paid to the ______________ categories of ______________, landlords, capitalists, and entrepreneurs for the production of fi nal goods and services for a given period. __________ or employee compensation is the largest component of gross domestic income or factor income in GDP accounting.
If GDP is $200, income earned by foreign investments is a credit gain of $22, income paid to foreigners is a debit loss of $28, losses from derivatives are $6, and net transfers abroad is a debit loss of $10, calculate Gross National Product (GNP) a) $184 b) $178 c) $194 d) $140 e) $204
In the system of GDP accounting, which of the following is counted towards government purchases? All of the answer options are correct. The city of Paris, Texas pays a private firm to recycle plastic waste in that city. The state of Oregon pays the salary of a public school teacher of Spanish. The federal government pays the salary of an Air Force officer.
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