Circular Flow & GDP
Each of the following is included in the gross domestic product EXCEPT _________.
a. Government expenditures
b. Net exports
c. Transfer payments
d. Consumption
c. Transfer payments
A limitation of GDP
Exclusion of non market transactions, environmental effects, product quality, inflation, etc
Organization that calculates unemployment rate
Bureau of Labor Statistics
Mr. Fogg's first name
Fred
Who calculates the GDP?
Bureau of Economic Analysis (BEA)
Breaking Bad example of non-market transactions
Walter White’s meth business
Everyone in the population that is able to and are looking to work
Labor force
BCA’s founder
John Grieco
Does a hurricane have a positive or negative effect on GDP in the long run and why?
Positive: increase in economic activity (new houses being built, more consumer spending for replacement goods, overall additive effect)
Name the specific limitation: 2019 Ferrari = $599; 1999 Ferrari = $599
Improved product quality
People who want to work but haven’t started looking for a job
Person
BCA’s CEEB code
310118
Current U.S Real GDP
20.18 Trillion
Example of a positive and negative externality and how they could not be represented in GDP
Positive: More bees from bee keeper/honey person = more plants pollinated so country is doing better off
Negative: More factories so more dump and waste so environment goes bad and country suffers
Twitter firing 10% of work force
Cyclical unemployment
Number of BCA guidance counselors
8
Year Nominal GDP (billions) GDP Deflator
1970 $20 50
1980 $32 80
1990 $45 100
2000 $80 160
Calculate the real GDP in 1980.
$40 billion
Person who famously criticized GDP “GDP measures everything, except that which makes life worthwhile”
Robert Kennedy
300 are in school, 500 sitting on their couch watching Netflix the whole day, 200 want to work, 400 looking for a job, 1600 employed. Find the enemployed % of Country Z!
20%
The year BCA was founded
1991