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 accompanying table shows data on nominal GDP (in billions of dollars), real GDP (in billions of 2012 dollars), and population (in thousands) of the United States in 1968, 1978, 1988, 1998, 2008, and 2018. The U.S. price level rose consistently over the period 1968–2018.   Year Nominal GDP(billions of dollars) Real GDP(billions of 2012dollars) Population(thousands) 1968 $941 $4,792 200,745 1978 2,352 6,569 222,629 1988 5,236 8,866 245,061 1998 9,063 12,038 276,154 2008 14,713 15,605 304,543 2018 20,580 18,638 327,436   c. Calculate real GDP per capita for the following years. Round answers to the nearest dollar. Real GDP per capita in 1978:________ Real GDP per capita in 1988:________ Real GDP per capita in 2008:________ Real GDP per capita in 2018:________

I don't know how many of these you can answer, but these questions are just true/false questions and I've been struggling with them. The sale of GE Washing Machines to East Coast Appliance would not be counted in GDP. Julia Jones' monthly Social Security payment would not be included in GDP. If unsold inventories = $ 200 in 2019 and $ 300 in 2020, then the amount to go into GDP for this category for 2020 would be $ 500.  Personal Consumption Expenditures account for about 25% of GDP. Spending on Consumer Durable Goods tends to be very stable from year to year. Sales of used goods are included in GDP at  35% of their original sale price. Investment in new technology (e.g., software) is included today in GDP in “Gross Private Investment.”  Government purchases of goods and services at all levels of government (federal, state, and local) are included in GDP.  Construction and sales of new housing would be included in “Personal Consumption Expenditures” in the durables goods…

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If Gdp deflator is equal at 120   it means that  :  1- stagflation  2- deflation  3- inflation  4- stability

compare and contrast the calculations for the consumer price index and the GDP price index as measures of inflation.

Which of the following is NOT included in 2004's GDP?   Group of answer choices The profit earned in 2004 from selling a stock that you purchased in 2001. The value of a personal computer produced in 2004 in the United States. The value of a car produced in 2004 in the United States and exported to England. The commission earned by an employment counselor in 2004 when she locates a job for a client.

In each of the following cases, explain clearly how the CPI might misrepresent changes in consumer prices (Commodity substitution bias, Introduction of new goods, or Un-measured quality changes). In each case, speculate as to whether CPI overstates or understates consumer expenses. (a) By 1990, expensive personal computers became a common expenditure in consumer baskets. However, some governments were still calculating the consumer’s basket using a 1975 survey. (b) Between 2007 and 2015, there were significant improvements in smartphones. (c) Compared to 1970, households in 2015 took more vacations. (d) Food quality has deteriorated over time, even as consumers purchase the same amount.

GDP can be calculated by all of the following methods except...

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.