Bundle: Exploring Macroeconomics, Loose-leaf Version, 7th + LMS Integrated MindTap Economics, 1 term (6 months) Printed Access Card
7th Edition
ISBN: 9781305784802
Author: Robert L. Sexton
Publisher: Cengage Learning
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Chapter 11, Problem 10P
To determine
Whether the production between 2008 and 2009 has increased in Nowhereland and why or why not.
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Students have asked these similar questions
Nominal GDP in Nowhereland in 2002 and 2003 increased from $4 trillion to $4.8 trillion. Can you say that the production of goods and services in Nowhereland has increased between 2002 and 2003? Why or why not?
GDP is a good and useful measure of general economic activity for each of the following reasons except
for which one? (Which one of the following is not either correct or a reason to rely on GDP as a measure
of economic activity?)
In order to raise the amount of goods and services available in a country, GDP must rise.
In order to have a true measure of economic activity, the income of all people needs to be
considered, and the value of goods and services for all people must be considered, and GDP
considers the income and spending for all people (in the country).
The total value of GDP is lower if the distribution of income is lower and less equitable, and is
higher if the distribution is higher and more equitable, and this makes GDP a good indicator of
aggregate economic activity.
In order to raise the income of some people, and have the income of no people go down, GDP
must rise.
People care about their income, and GDP is a measure of total income.
Chapter 11 Solutions
Bundle: Exploring Macroeconomics, Loose-leaf Version, 7th + LMS Integrated MindTap Economics, 1 term (6 months) Printed Access Card
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- List some of the reasons why economists should not consider GDP an effective measure of the standard of living in a county.arrow_forwardWhich of the following are included in GDP calculations? a. Cleaning services performed by Molly Maid Corporation b. Lawn-mowing services performed by a neighborhood child c. Drugs sold illegally on a local street comer d. Prescription drugs manufactured in the United States and sold at a local pharmacy e. A rug woven by hand in Turkey f. Air pollution that diminishes the quality of the air you breathe g. Toxic-waste cleanup performed by a local company h. Car parts manufactured in the United States for a car assembled in Mexico i. A purchase of 1,000 shares of IBM stock j. Monthly Social Security payments received by a retireearrow_forward
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