GDP measures:the value of productiontotal expendituresincome of factors productionall the above 2. GDP does NOT include:re-sale of housesdurable consumption spendingconsumption spending for servicespayment of WVU faculty salaries 3. Suppose that Inventories fall by $2 billion, Consumption increases by $8 billion, Welfare Payments decline by $3 billion, Export increases by $2 billion and Import also increases by $2 billion. Ceteris paribus! By how much should measured-GDP change? $6 billion$8 billion$11 billion$9 billion

1. GDP: Gross domestic product or GDP is the measurement of all the final goods and services that…

Answered: GDP measures: the value of production…

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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Question

GDP measures:

the value of production
total expenditures
income of factors production
all the above

2. GDP does NOT include:

re-sale of houses
durable consumption spending
consumption spending for services
payment of WVU faculty salaries

3. Suppose that Inventories fall by $2 billion, Consumption increases by $8 billion, Welfare Payments decline by $3 billion, Export increases by $2 billion and Import also increases by $2 billion. Ceteris paribus! By how much should measured-GDP change?

$6 billion
$8 billion
$11 billion
$9 billion

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