AP Macroeconomics: Unit 2 Exam Questions Verified Correct Answers New Update (A+ Pass)
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AP Macroeconomics
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AP Macroeconomics
AP Macroeconomics: Unit 2 Exam Questions Verified Correct Answers New Update (A+ Pass)
National income accounting - Answers - The techniques used to measure the overall production of the economy and other related variables for the nation as a whole.
Gross domestic product - Answers - The to...
AP Macroeconomics Unit 2 Exam
Questions Verified Correct Answers
New Update (A+ Pass)
National income accounting - Answers -✔✔ The techniques used to measure the
overall production of the economy and other related variables for the nation as a whole.
Gross domestic product - Answers -✔✔ The total market value of all final goods and
services produced annually within the boundaries of the United States, whether by U.S.
or foreign-supplied resources.
Intermediate goods - Answers -✔✔ products that are purchased for resale or further
processing or manufacturing.
Final goods - Answers -✔✔ goods that have been purchased for final use and not for
resale or further processing or manufacturing.
multiple counting - Answers -✔✔ wrongly including the value of intermediate goods in
the gross domestic product; counting the same good or service more than once.
Value added - Answers -✔✔ The value of the product sold by a firm less the value of
the produces (materials) purchased and used by the firm to produce the product.
Expenditures approach - Answers -✔✔ the method that adds all expenditures made for
final goods and services to measure the gross domestic product.
Income approach - Answers -✔✔ the method that adds all the income generated by the
production of final goods and services to measure the gross domestic product.
Personal consumption expenditures (C) - Answers -✔✔ the expenditures of
households for durable and nondurable consumer goods and services.
Gross private domestic investment (Ig) - Answers -✔✔ Expenditures for newly
produced capital goods (such as machinery, equipment, tools, and buildings) and for
additions to inventories.
Net private domestic investment - Answers -✔✔ gross private domestic investment
less consumption of fixed capital; the addition to the nation's stock of capital during a
year.
, government purchases (G) - Answers -✔✔ expenditures by government for goods and
services that government consumes in providing public goods and for public (or social)
capital that has a long lifetime; the expenditures of all governments in the economy for
those final goods and services.
Net exports (Xn) - Answers -✔✔ Exports minus imports
national income - Answers -✔✔ total income earned by resource suppliers for their
contributions to gross domestic product; equal to the gross domestic product minus
nonincome charges, minus net foreign factor income.
indirect business taxes - Answers -✔✔ such taxes as sales, excise, and business
property taxes, license fees, and tariffs that firms treat as costs of producing a product
and pass on (in whole or in part) to buyers by charging higher prices.
consumption of fixed capital - Answers -✔✔ an estimate of the amount of capital worn
out or used up (consumed) in producing the gross domestic product; also called
depreciation.
net domestic product (NDP) - Answers -✔✔ gross domestic product less the part of the
year's output that is needed to replace the capital goods worn out in producing the
output; the nation's total output available for consumption or additions to the capital
stock.
personal income (PI) - Answers -✔✔ the earned and unearned income available to
resource suppliers and others before the payment of personal taxes.
disposable income (DI) - Answers -✔✔ personal income less personal taxes; income
available for personal consumption expenditures and personal saving.
nominal GDP - Answers -✔✔ the GDP measured in terms of the price level at the time
of measurement (unadjusted for inflation).
price index - Answers -✔✔ an index number that shows how the weighted-average
price of a "market basket" of goods changes over time.
real GDP - Answers -✔✔ Gross Domestic Product adjusted for inflation; gross
domestic product in a year divided by the GDP price index for that year, the index
expressed as a decimal.
consumer price index (CPI) - Answers -✔✔ an index that measures the prices of fixed
"market basket" of some 300 goods and services bought by a "typical" consumer.
per capita output - Answers -✔✔ found by dividing real GDP by population.
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