How to find GDP gross domestic product
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AP Macroeconomics › How to find GDP gross domestic product
Each of the following is included in the gross domestic product EXCEPT _________.
Transfer payments
Consumption
Government Expenditures
Net Exports
Explanation
To calculate the GDP, we add consumption, investment, government expenditures, and net exports.
Transfer payments, such as social security, welfare, and unemployment checks, on the other hand, are not included in the calculation of the GDP.
Which of these methods is a correct model for GDP?
Explanation
The quantity of money times the velocity of money is equal to the real output times the price level. So, if the above equation is solved for Y, it gives us:
Which of the following is NOT a measure of income when using the income approach to calculate GDP?
Governmental tax revenue.
Interest and investment income.
Wages and salaries.
Profits from corporations.
Income from farmers.
Explanation
The income approach to calculating GDP will arrive at the same number as other approaches, such as the production approach or expenditure approach. The five sources of income used to calculate Income GDP, or Gross Domestic Income, are wages and salaries; interest and investment income; corporate profits; farmers' income; and non-farm unincorporated business profits.