Economists calculate GDP two different ways. They add up the total value of all final goods and services produced in the economy in a given year and add up the total value of the resources used in making these goods and services. Identify these two approaches.
a. The former calculation is called the circular flow approach to GDP; the latter is called the income approach to GDP
b. The former calculation is called the expenditure approach to GDP; the latter is called the income approach to GDP.
c. The former calculation is called the income approach to GDP; the latter is called the expenditure approach to GDP.
d. The former calculation is called the real GDP approach; the latter is called the nominal GDP approach.
e. The former calculation is called the nominal GDP approach; the latter is called the real GDP approach.
B
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A) passbook savings account B) checking account C) 401(k) retirement account D) credit card account
The Solow residual is a measure of
A) average labor productivity. B) average capital productivity. C) total factor productivity. D) the rate of growth of real GDP.
According to the text, ________ is perhaps the most critical aspect of a country's economic performance.
A. growth in GDP B. the inflation rate C. the unemployment rate D. the living standard
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A. Inversely related B. Unrelated C. Directly, but not closely, related D. Directly and closely related