. Which of the following would not give us a measure of GDP? a) The aggregate value of all incomes received from participation in the economy b) The aggregate value of purchases of goods and services produced within the economy. c) The value added in production of goods and services in the economy. d) The value of all sales of goods and services in the economy.
1. Which of the following would not give us a measure of
a) The aggregate value of all incomes received from participation in the economy
b) The aggregate value of purchases of goods and services produced within the economy.
c) The value added in production of goods and services in the economy.
d) The value of all sales of goods and services in the economy.
2. Suppose that over the last three years, there has been a 10% increase in real GDP, but a 5% increase in nominal GDP, we might conclude that
a) The economy has entered a recession.
b) The price level has increased, with 5% inflation.
c) The price level has decreased, with 5% deflation.
d) The economy has experienced a combination of low growth and inflation.
3. In a simple closed economy, consumption is given by the relationship C=0.5Y, where C is consumption expenditure and Y is GDP. If government expenditure is £150 million and investment is £50 million, what will be the value of GDP of the economy?
a) £200 million
b) £300 million
c) £400 million
d) £600 million
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