C.final goods and services.

d.neither goods nor services.

94.Which of the following are expenditures included in the calculation of the Gross Domestic Product? i. Investment.

ii. Government Purchases.

iii. Net Exports.

iv. Consumption.

a.only ii, iii, and iv

b.only i, ii, and iii

c.only i, iii, and iv

D.all four

95.For the purposes of national accounting, 'Investment' can be defined as:

a.depositing money in Certificates of Deposits (CDs) or Money Market accounts.

b.purchases of stocks and bonds.

C.spending on capital equipment, inventories, and structures.

d.putting money away in a 401K pensions fund system.

96.For the purpose of national accounting, 'Consumption' refers to the:

A.spending done by households on everything except house purchases.

b.wear and tear through the normal use of machinery and equipment.

c.way Tuberculosis used to be called in the 19th century, at the time when economists were figuring out national accounting standards.

d.wear and tear of highways and infrastructure through normal use.

97.'Net Exports' are the nation's:

a.exports minus imports of goods only.

B.exports minus imports of goods and services.

c.imports minus exports of goods only.

d.imports minus exports of goods and services.

98.The 'Government Purchases' category of GDP includes all government spending on goods and services:

a.including transfer payments.

B.except transfer payments.

c.excluding local government spending.

d.excluding state government spending

99.If Nominal GDP increased from $1.0 trillion in 2000 to $1.2 in 2005, we:

a.can say that output increased by 20% in the economy through that period.

b.can say that prices increased by 20% in the economy through that period.

c .don't have enough information from this to determine how much output actually increased in the economy.

d.can say that output increased by 20% in the economy compared to the base year.

100.If the Nominal GDP is $1.6 trillion, and the Real GDP is $1.0 trillion, the GDP deflator is:

A.160

b.62.5

c.60

d.37.5

Production and Growth

101.

Over the last 100 years, which of the following countries has grown the fastest?

a.United States

b.United Kingdom

c.Germany

D.Japan

102.

Small changes in its growth rate make ________ changes in the GDP per person in the long term.

A.very big

b.small

c.insignificant

d.inverse

103.

The key to increasing real average incomes in a nation lies in:

a.activist labor unions, that force businesses to increase wages throughout the nation.

b.raising significantly the minimum wage.