Question

Select the correct answer:

The market value of all the final goods and services produced within a country in a given time period is (GDP; investment).

(Net exports of goods and services; Net Taxes) equals the value of exports minus the value of imports.

(Real; Nominal) GDP values production during the year using constant prices while ____ (real; nominal) GDP values production using prices that prevailed during the year.

(Consumption expenditure; Investment) is the largest component of GDP.

(Real GDP per person; Potential GDP) is a measure of the standard of living.

The (Nominal GDP; Business Cycle) has two phases: recession and expansion; and two turning points: peak and trough.

A (recession; expansion) is the time period between a trough and a peak.

According to Eye on the Booms and Busts in textbook page 386 the NBER concluded that US economy hit a peak in which month? (November 2007; January 2008).

If you stay home and cook for yourself instead of eating out, this is considered (household production; underground production) and it is not counted as a productive activity in GDP.

Answer 1

1. GDP

GDP is the market value of goods and services produced by a country during a given period of time.

2. Net exports of goods and services.

Net exports = Exports - Imports

3. Real GDP

Real GDP = Base year price x Current year quantity

4. Nominal GDP

Nominal GDP = Current year price x Current year quantity

5. Consumption expenditure

6. Real GDP per person

7. Business cycle

Business cycle has phases of recession, expansion.

8. Expansion

9. Underground production