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Econ 202 Exam 1 Study Guide
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Econ 202 Exam 1 Study Guide
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Econ 202 Exam 1 Study GuideY is Correct Answer-GDP
C is Correct Answer-consumption
I is Correct Answer-investment
G is Correct Answer-Government expenditure
NX is Correct Answer-net export
NX equals Correct Answer-export - import (NX = X-M)
GDP Equation Correct Answer-Y = C + I + G + NX
Value added approach GDP Correct Answer-market value of all final goods and services produced within a country in a given period of time (FINAL MARKET VALUE is the orange juice itself, NOT the oranges and ingredients that make it)
Inventory - goods produced to be sold are Correct Answer-investments
Nominal GDP uses Correct Answer-current years market prices Real GDP uses Correct Answer-market prices of a base year from the past
Nominal GDP is not used for inflation but real GDP is correct for inflation (true or false) Correct Answer-True
Nominal and real of base year is always the same (rewrite) Correct Answer-Nominal and real of base year is always the same
Real GDP growth rate Correct Answer-Real GDP current year - Real GDP previous year / real GDP previous year x 100
(Graph) Why is nominal GDP in 2009 greater than real GDP of 2009? Correct Answer-Market prices of 2009 are greater than market prices of 2005
When will nominal GDP and real GDP for 2018 be the exact same? (Base year 2005) Correct Answer-When the prices are the same as 2005 (base year)
Assume in 2019, GDP Deflator is less than 100. What does this mean? Correct Answer-Means prices in 2019 were less than prices in 2005 (base year)
Real interest rate is Correct Answer-increase in purchasing power
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