1. GDP is calculated by summing ________. consumption, investment, and exports o
ID: 2813635 • Letter: 1
Question
1. GDP is calculated by summing ________.
consumption, investment, and exports of all final goods and services produced within the borders of a given country during a specific period
the dollar value of all final goods and services produced within the borders of a given country during a specific period
government expenditures within the borders of a given country during a specific period
the quantity of all final goods and services produced within the borders of a given country during a specific period
2. Which of the following is NOT a component of gross domestic product (GDP)?
Consumption
Investments
Net exports
Taxes
3. The CPI is a measure of the overall cost of the goods and services bought by ________.
foreign visitors to the United States
a typical U.S. consumer
government agencies such as the Bureau of Labor Statistics
typical U.S. businesses
4. The real interest rate equals ________.
the inflation rate minus nominal interest rates
nominal interest rates minus the inflation rate
nominal interest rates plus the inflation rate
the actual interest rate over the period of the investment
Explanation / Answer
1)
the dollar value of all final goods and services produced within the borders of a given country during a specific period
GDP measures the total value of goods and services produced within a country during a specified period. It s calculated by summing investments, consumption, government expenditure and net exports
2)
Taxes
GDP does not include taxes
c)
typical U.S. consumer
CPI is a measure of inflation which includes goods and services bought by a typical consumer
4)
nominal interest rates minus the inflation rate
Real interest rate = Nominal interest rate - inflation rate. This is the actual return for an investor.
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