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Macro 2.1-2-Winddown-Measuring a Nation's Income

Last updated over 1 year ago

7 Nsɛmmisa

1

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1.

Explain why an economy's income must equal it's expenditures.

1

1

1

1

1

1

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2.

Which contributes more to GDP: The production of an economy boat or the production of a luxury boat?

Economy Boat

Luxury Boat

C

D

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3.

A farmer sells a baker $2 in wheat. The baker uses the wheat to make bread. The bread is sold for $3. What is the total contribution to GDP?

$1

$2

$3

$5

$6

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4.

Many years ago Mr. Burbine paid $1000 for CDs. Yesterday he sold those CDs for a $100. What is the total contribution to this years GDP?

$1000

$1100

$0

-$900

$900

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5.

What are the 4 components of GDP?

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6.

Why do economist use Real GDP instead of Nominal GDP?

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7.

Give an example of something for which GDP does not account.