GDP and Economic Indicators Quiz true& false

GDP includes the market value of both final goods and intermediate goods.

• True

• False

Transfer payments (e.g., Social Security) are included in government spending (G) when calculating GDP.

• True

• False

Net Domestic Product (NDP) equals GDP minus depreciation.

• True

• False

Gross National Product (GNP) measures output produced within a country’s borders, regardless of citizenship.

• True

• False

Aggregate income is always equal to aggregate production.

• True

• False

The Consumer Price Index (CPI) allows yearly changes in the basket of goods to reflect consumer habits.

• True

• False

Real GDP is calculated using current prices, while nominal GDP adjusts for inflation.

• True

• False

Net exports are calculated as imports minus exports.

• True

• False

The Genuine Progress Indicator (GPI) adjusts GDP to include social goals like pollution reduction.

• True

• False

Purchasing power parity (PPP) adjusts GDP comparisons to account for differences in relative prices between countries.

• True

• False