Ch 12 GDP/Business Cycle

What type of GDP is calculated with the current year's prices?

• Nominal GDP
• Real GDP
• GDP per capita

Expectant parents buy supplies for the nursery.  Would this be included in GDP? 

• Yes - Consumer Spending
• Yes - Investment 
• No - Intermediate goods
• No - Non-market activity

The trade in exotic animals being illegally sold as pets is a multi-billion-dollar-a-year industry.  Is this included in GDP?

• Yes - Consumer spending
• Yes - Government Spending
• No - Underground Economy 
• No - Non-market activity 

The federal government is expected to spend $3.95 trillion this year.  Will this be counted in GDP?

• YES
• NO

Aly spends $400 on used textbooks at the beginning of the semester in college.  Is this included in the GDP?

• YES
• NO

The value of the output of all final goods and services produced within a country in a year.

• total ouput
• Gross Domestic Product
• national income
• net domestic product

GDP is calculated by

• adding up the cost of goods used in producing the item
• subtracting all costs from total revenue
• adding consumption + investment +government spending+ (exports sold - imports bought)

Each individual on food stamps in Delaware can receive up to $194 a month.  Is this included in government spending?

• Yes - Government spending
• Yes - Consumer Spending
• No - Intermediate Goods
• No - Purely financial Transaction 

period of economic growth as measured by a rise in real GDP

• peak
• contraction
• trough
• expansion

which of the following is NOT included when calculating GDP for the United States

• Cars manufactured in Japan, but sold in the United States
• Cars manufactured in the United States, but sold in Japan
• Cars manufactured in Michigan, but sold in Minnesota
• Cars manufactured in Michigan, but sold to the government