GDP excludes most of two types of production. List one
GDP excludes most items that are produced and consumed at home.
GDP excludes most goods that are produced and sold illicitly.
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A portfolio of a range of stocks, bonds, and other investments helps an investor reduce the risk of investment.
Answer the following statement true (T) or false (F)
The purchase of U.S. assets by foreigners is a:
a. capital inflow. b. capital outflow. c. current account deficit. d. unilateral transfer.
According to the rule of 70,
a. if a country is growing at 14% per year, its output will double in approximately 5 years. b. if a country is growing at 10% per year, its output will double in approximately 7 years. c. if a country is growing at 2% per year, its output will double in approximately 35 years. d. all of the above are true.
Why is it important to use real rather than nominal GDP figures when making comparisons of output across time periods?
a. The real GDP figures are a better measure of changes in the general level of prices. b. The real figures will reflect changes in the quantity of output and not changes in the general level of prices. c. The real figures will reflect changes in the general level of prices as well as changes in the quantity of output. d. The real GDP figures adjust for changes in the level of employment.