Q: “I just heard on the news that GDP is higher this
“I just heard on the news that GDP is higher this year than it was last year. This means that we’re better off this year than last year.” Comment.
See AnswerQ: Does the expenditure approach to computing GDP measure U.S.
Does the expenditure approach to computing GDP measure U.S. spending on all goods, or U.S. spending on only U.S. goods, or U.S. and foreign spending on only U.S. goods? Explain your answer.
See AnswerQ: Explain how the market moves to equilibrium in terms of shortages and
Explain how the market moves to equilibrium in terms of shortages and surpluses and in terms of maximum buying prices and minimum selling prices.
See AnswerQ: In the first quarter of the year, Real GDP was $
In the first quarter of the year, Real GDP was $400 billion; in the second quarter it was $398 billion; in the third quarter it was $399 billion; and in the fourth quarter it was $395 billion. Has the...
See AnswerQ: Which of the following are included in the calculation of this year’s
Which of the following are included in the calculation of this year’s GDP? (a) 12-year-old Johnny mowing his family’s lawn; (b) Dave Malone buying a used car; (c) Barbara Wilson buying a bond issue...
See AnswerQ: Discuss the problems you see in comparing the GDPs of two countries
Discuss the problems you see in comparing the GDPs of two countries, say, the United States and the People’s Republic of China.
See AnswerQ: The manuscript for this book was keyed by the author. Had
The manuscript for this book was keyed by the author. Had he hired someone to do the keying, GDP would have been higher than it was. What other activities would increase GDP if they were done differen...
See AnswerQ: Why does GDP omit the sales of used goods? Of financial
Why does GDP omit the sales of used goods? Of financial transactions? Of government transfer payments?
See AnswerQ: A business firm produces a good this year that it doesn’t sell
A business firm produces a good this year that it doesn’t sell. As a result, the good is added to the firm's inventory. How does this inventory good find its way into GDP?
See AnswerQ: Economists prefer to compare Real GDP figures for different years instead of
Economists prefer to compare Real GDP figures for different years instead of comparing GDP figures. Why?
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