The financial sector of a country is very small. Local banks refuse many clients because they do not have enough capacity. As a result, some households put their savings in banks of neighboring countries. Which of the following is most likely ? Select one: a. GDP is greater than GNP. b. GDP and GNP are equal c. GNP is greater than GDP d. It is not possible to say anything on GDP and GNP

The financial sector of a country is very small. Local banks refuse many clients because they do not have enough capacity. As a result, some households put their savings in banks of neighboring countries. Which of the following is most likely ? Select one: a. GDP is greater than GNP. b. GDP and GNP are equal c. GNP is greater than GDP d. It is not possible to say anything on GDP and GNP

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 4QP

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Similar questions

What is the difference between GDP and Gross National Product (GNP)? Why do economists look at per capita measures of GDP and GNP when making comparisons between nations?
How is the GDP deflator calculated? A. GDP deflator = Nominal GDP Real GDP x 100 B. GDP deflator = (Nominal GDP + Real GDP) × 100 C) GDP deflator = Real GDP Nominal GDP× 100 D. GDP deflator= (Nominal GDP - Real GDP) × 100
Which of the following is wrong? Select one: a. In the expenditures approach to GDP we subtract imports because they represent spending on production outside the borders of a country. b. Price indexes are computed by dividing the price of a specific collection or market basket of output in a particular period by the price of the same market basket in a base period and multiplying the result (the quotient) by 100. c. Exports are subtracted from imports in calculating GDP because exports are not available for domestic consumption. d. Gross private domestic investment exceeds depreciation in an economy that experiences expanding production capacity.
The GDP for a small economy in 2010 was $9,950. This was composed by $4,600 of consumption, $2,650 of investments, $2,100 of government purchases, and $4,550 of exports. In this case what is the amount of imports for this economy in 2010? Select one: a. $3,550 b. $3,950 c. $4,780 d. None of the answers are correct e. $4,120
Need both answers Question 8 Suppose Barbara, a self-employed graphic artist, buys a new color copier that she uses to produce pamphlets for her clients. The ink cartridges Barbara uses in the printer Select one: A. would be included in GDP as an export. B. would be included in GDP as part of government spending. C. would be included in GDP as part of investment. D. would be included in GDP as part of consumption. E. would not be included in GDP because they are an intermediate good. Clear my choice Question 9 The following data are the seasonally adjusted percent changes from the preceding month for the United States. November 2018 December 2018 Total PPI -0.1 -0.1 Core PPI +0.2 0.0 In December 2018, food and energy prices in the United States _____ from their November 2018 levels. Select one: A. remained unchanged B. decreased C. increased
As you learned in the most recent chapter, GDP is the broadest measure of economic health in the U.S. Therefore, the discussion forum for the week will ask you to discuss GDP in your own words. Specifically, Business leaders, Government officials, and investors are often fixated on GDP results and economic growth. Why? What does it matter? The same level of interest is given to productivity. What is it and why does it matter in the scheme of things? What does GDP fail to tell us?
If consumption is 10, investment 5, government purchases 6, exports 8, and imports 7, what is GDP?
One way to measure a country’s economy is per capita gross domestic product, or per capita GDP. This is the value of all the products and services produced in a country over the course of a year divided by its population. If the United States had a per capita GDP of $60,700 and the population was about 322 million, which of the following is a reasonable estimate for the GDP of the United States? i. $20 billion ii. $1.2 trillion iii. $30 trillion iv. $20 trillion v. $30 billion
Go online and find the current GDP for countries, which are the largest countries in the world in terms of GDP. Find a PPP GDP, which are the largest countries now? Why the difference?
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Profits earned in a foreign country by U.S.-owned companies are included in Select one: a. both the United States GDP and GNP. b. the United States GNP but not GDP. c. the United States GDP but not GNP. d. neither the United States GDP nor GNP.
Which statement is INCORRECT? Statisticians use the prices of goods and services like a ruler to measure the size and growth of US output. To calculate the US GDP, statisticians add up the output produced within the country, regardless of whether the people and businesses which produce that output are nationals of other countries. To calculate the US GDP, statisticians add up the value of all the intermediary and final output. To calculate the US GDP, statisticians add up the market value of our output. All the statements are correct.