ECON 1100 Study Guide - Final Guide: Fiscal Multiplier, Seigniorage, Hyperinflation

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emeraldhippopotamus83

14 Feb 2017

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Chapter 4: gdp; measuring total production & income. Gdp: gross domestic product, (cid:373)easu(cid:396)e of e(cid:272)o(cid:374)o(cid:373)(cid:455)"s total production of goods & services. Business cycle: alternating periods of economic expansion and recession. Expansion: period during which total production & total employment are increasing. Recession: period during which total production & total employment are decreasing. Economic growth: ability of economy to produce increasing quantities of goods and services. Market value of all final goods and services produced in a country in one year. Measured by taking value (dollar worth) of all goods and services rather than quantity. Gdp = quantity of final goods&services x value. Final good/service: good or service purchased by a final user. Intermediate good: good or service that is inputted into another good/service. Only includes current production: that occurs during indicated time period. When measuring value of total production (gdp), also simultaneously measuring the value of total income (what is spent must end up as someones income)

Related Questions

Gross Domestic Product (GDP) only measures the value of marketed goods and services for a country during a given period of time.

Is the GDP measure underestimating or overestimating national production and total income in the economy? Why?

What are the limitations of the GDP in measuring total output and national welfare? What products (services) are excluded from the GDP computation?

ambergnu461

Which phrase defines gross domestic product (GDP)?

A. the difference of expenditures made importing goods and income earned from exporting goods.
B. the total monetary value of all the finished goods and services produced in a country in a given period.
C. the economic value of the professional skills and knowledge used in the production of goods and services.
D. the total investments made for the manufacture of domestic products and services in one year.

blusheagle829

An improvement in technology causes the production possibilities frontier (PPF) to

	shift to the right.
	pivot upward.
	shift to the left.
	pivot downward.

(7)

Which of the following is not shown by the circular flow model?

	The flow of resources in one direction and money in the other
	The equality of aggregate spending and aggregate income
	The interaction of households, firms, and the government
	The total amount of goods and services the economy can produce

(8)

Gross domestic product (GDP) is defined as

	the market value of all final goods and services produced in an economy in a given period of time.
	the market value of all consumption goods and services produced in an economy in a given period of time.
	the market value of all investment goods and services produced in an economy in a given period of time.
	the real value of all investment goods and services produced in an economy in a given period of time.

(9)

Real GDP

	includes all domestic and foreign transactions.
	includes the dollar value of domestic transactions only.
	tries to isolate the effect of changing output, holding prices constant.
	measures GDP in terms of prices of goods and services produced.

(10)

When economists talk about economic growth, they are usually referring to

	the percentage change in nominal GDP.
	the percentage change in real GDP.
	the percentage change in nominal investment.
	the percentage change in real investment.

chocolateant769

ECON 1100 Study Guide - Final Guide: Fiscal Multiplier, Seigniorage, Hyperinflation

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