Gross Domestic Product
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AP Macroeconomics › 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.
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.
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 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 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:
In a certain year, nominal gross domestic product grew by 8 percent. The inflation rate was 4 percent. Real gross domestic product for this year was .
grew by 4 percent
grew by 8 percent
grew by 12 percent
remained constant
Explanation
Nominal GDP growth refers to the rate at which real GDP increases. To find real GDP growth (i.e. GDP growth that accounts for inflation), subtract the inflation rate from the nominal GDP growth rate.
In this case, the nominal GDP growth rate is 8 percent, and the inflation rate is 4 percent. Thus, the real GDP growth rate is 4%.
In a certain year, nominal gross domestic product grew by 8 percent. The inflation rate was 4 percent. Real gross domestic product for this year was .
grew by 4 percent
grew by 8 percent
grew by 12 percent
remained constant
Explanation
Nominal GDP growth refers to the rate at which real GDP increases. To find real GDP growth (i.e. GDP growth that accounts for inflation), subtract the inflation rate from the nominal GDP growth rate.
In this case, the nominal GDP growth rate is 8 percent, and the inflation rate is 4 percent. Thus, the real GDP growth rate is 4%.
In a certain year, nominal gross domestic product grew by 8 percent. The inflation rate was 4 percent. Real gross domestic product for this year was .
grew by 4 percent
grew by 8 percent
grew by 12 percent
remained constant
Explanation
Nominal GDP growth refers to the rate at which real GDP increases. To find real GDP growth (i.e. GDP growth that accounts for inflation), subtract the inflation rate from the nominal GDP growth rate.
In this case, the nominal GDP growth rate is 8 percent, and the inflation rate is 4 percent. Thus, the real GDP growth rate is 4%.
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.