Post20

Reviewing Facts:
2. b. a. the nominal GDP is the current GDP.


Identifing Ideas:
5. gross. net. Net domestic product is a more representative measure of a nation's actual output of new goods than GDP because it doesn't include depreciation.


Understanding Ideas:
2. none. d. a,b, and c are use to avoid double counting when economists measure GDP.
3. none. d. a,b, and c are use by economists to create a price index.
7. none. d. a,b, and c are examples of a coincident indicator.
8. none. a. use of consumer installment credit is an example of a lagging indicator.


Matching:
2. i. b. Nominal GDP is the value of a nation's gross domestic product at the current prices of the period being measured.
4. t. f. Unlike GDP, the GNP included the income of the overseas divisions of U.S companies. 


Chart:
expansion. peak. it is turning point of the economy.
peak. expansion. it is when economic activity is increasing toward a peak. 


Writting:
C+I+G+(X-M)= GDP
C- Personal consumption expenditures: is the sum of expenditures by household by durable goods, nondurable goods, and services.
I- Gross investment: is the sum of expenditures on capital equipment, inventories, and structures
G-Government purchases: is the sum of expenditures by all government bodies on goods and services.
X-M-Net Exports and Imports: equals the difference between spending on domestic goods by foreigners and spending on foreign goods by domestic resident.
GDP-Total GDP