Define GDP and its characteristics
What will be an ideal response?
GDP is the total market value of all final goods and services produced within the borders of a given country in a given period of time, typically a year. It is a monetary measure that excludes nonproductive transactions, such as the value of stock or bond sales, the sales of used goods, and public or private transfer payments. GDP is a measure of value added. It avoids multiple counting by measuring the value of final goods and services and excludes the value of intermediate goods.
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The above figure shows the market for pizza. The market is in equilibrium when people learn that eating pizza helps prevent heart disease. What point represents the most likely new price and quantity?
A) A B) B C) C D) D E) E
In the fooling model, suppose that from an initial AD/SAS/LAS equilibrium a sudden expansion of aggregate demand occurs. With fooling, we would find employment and the actual real wage in the labor market diagram by moving
A) "northeast" along the labor supply curve. B) "northwest" along the labor demand curve. C) "southeast" along the labor demand curve. D) "southwest" along the labor supply curve.
In 2009 Congress passed legislation providing states with funds to build roads and bridges. It also instituted tax cuts. Which of these shifts aggregate demand right?
a. only the increased funding for states b. only the tax cuts c. both the increased funding for states and the tax cuts d. neither the increased funding for states nor the tax cuts
A common tool for restricting trade through quantity is:
A. international waters use policies. B. immigration restrictions. C. import quota. D. a tariff.