What is GDP?
What does GDP stand for?
Gross Domestic Product
What does the "C" stand for in the formula?
Consumption
Nominal GDP is measured using
Current prices
A final good is
Purchased for end use
Buying a new car
Which section of the formula would it be in?
Yes, C
GDP measures
The total amount of final goods and services produced within a country
How are net exports calculated?
Real GDP adjusts for
Inflation
An intermediate good is
Used in the production of another good
A stay-at-home parent taking care of children
What part of GDP would this be counted in?
No, its not counted
GDP is typically measured over
A specific time period (like a year or quarter)
What is an example of a business investment in GDP?
Which is better for comparing economic growth over time?
Real GDP
Why are intermediate goods excluded from GDP?
To avoid double counting
Black market sales
Not counted
Which of the following is included in GDP?
A. Used goods
B. Final goods
C. Illegal activity
D. Company goods
B
Which is another way of expressing NX?
X-M
If prices rise but output stays the same, nominal GDP will
A. Rise
B. Fall
C. Stay the same
D. Neither
A loaf bread sold to a consumer is a ________ but a loaf of bread sold to a baker is a _____________
FINAL good, INTERMEDIATE good
Buying a house built in 2015
What part of the GDP formula is this in?
No, (I)
GDP focuses on production that occurs
Within a country's borders
Which of the following is NOT included in GDP for (G)?
A. Public school funding
B. Transfer payments
C. Taxes
D. Repaving the parking lot
B
Real GDP uses prices from a
Base year
A tire manufacturer produces 1,000 tires in Year 1. They sell 800 to a car manufacturer (to be installed on new cars) and 200 remain in inventory. In Year 2, those 200 tires are sold to consumers for replacements. How is this accounted for in GDP?
The 200 tires are counted
Social Security
What part of the GDP formula would it be in?
No, G