PowerPoint Presentation 1 In the equation Y = C + I + G + NX (E I), Y represents the economy’s total expenditure C represents household expenditures on services and durable goods all of the variables.
• In the equation Y = C + I + G + NX (E-I), • Y represents the economy’s total expenditure • C represents household expenditures on services and durable Bấm để thêm nội dung goods • all of the variables are always positive numbers • All of the above are correct • GDP is equal to • the market value of all final goods and services produced within a country in a given period of time • Y • C + I + G + NX • All of the above are correct • The consumption component of GDP includes spending on • • • • durable goods and nondurable goods, but not spending on services durable goods and services, but not spending on nondurable goods nondurable goods and services, but not spending on durable goods durable goods, nondurable goods, and services • Consumption consists of spending by households on goods and services, with the exception of • • • • purchases of intangible services purchases of durable goods purchases of new houses spending on education • Which of the following is included in the consumption component of GDP? • • • • household purchases of appliances household purchases of medical care household purchases of food All of the above are included in the consumption component of GDP • Which of the following is an example of a durable good? • • • • a hair dryer a suit a pair of shoes All of the above are correct • Which of the following is not an example of a durable good? • • • • a refrigerator an automobile a business suit a furnace • Which of the following is included in the consumption component of U.S GDP? • purchases of staplers, paper clips, and pens by U.S business firms • purchases of natural gas by U.S households • purchases of newly constructed homes by U.S households • All of the above are correct 12 • Which of the following is included in the investment component of GDP? • • • • • households’ purchases of newly constructed homes net additions to firms’ inventories firms’ purchases of capital equipment All of the above are correct 13 • Which of the following is included in the investment component of GDP? • • • • • spending to build new houses spending to build new factories spending on business equipment such as welding equipment All of the above are included in the investment component of GDP 14 • Which of the following is included in the investment component of GDP? • • • • Elaine pays her college tuition bill John’s law firm buys him a new computer Laura buys a bond that McDonald’s sells to raise funds All of the above are correct 15 • The value of goods added to a firm's inventory in a certain year is treated as • consumption, since the goods will be sold to consumers in another period • intermediate goods, and so is not included in that year’s GDP • investment, since GDP aims to measure the value of the economy's production that year • spending on durable goods, since the goods could not be inventoried unless they were durable 16 • A good is produced by a firm in 2009, added to the firm’s inventory in 2010, and sold to a household in 2010 As a result, on net, • • • • 2009 GDP increased and 2010 GDP decreased 2009 GDP decreased and 2010 GDP increased 2009 GDP did not change and 2010 GDP increased 2009 GDP increased and 2010 GDP did not change 17 • Which of the following is included in government purchases? • • • • unemployment benefits a state pays Social Security payments the U.S government makes the services of a U.S government attorney valued at the cost of her salary All of the above are correct 18 • If a U.S citizen buys a dress made in Nepal by a Nepalese firm, then • U.S consumption increases, U.S net exports decrease, and U.S GDP decreases • U.S consumption increases, U.S net exports decrease, and U.S GDP is unaffected • U.S consumption decreases, U.S net exports increase, and U.S GDP increases • U.S consumption decreases, U.S net exports increase, and U.S GDP is unaffected ... net, • • • • 2009 GDP increased and 2010 GDP decreased 2009 GDP decreased and 2010 GDP increased 2009 GDP did not change and 2010 GDP increased 2009 GDP increased and 2010 GDP did not change... increase by $200 and U.S GDP increases by $200 • U.S consumption purchases increase by $200 and U.S GDP increases by $10,000 • U.S consumption purchases increase by $10,000 and U.S GDP increases by $10,200... decrease, and U.S GDP decreases • U.S consumption increases, U.S net exports decrease, and U.S GDP is unaffected • U.S consumption decreases, U.S net exports increase, and U.S GDP increases • U.S