Chapter 6: Q 11. (page 160)
What are the main components of measuring GDP
with what is demanded?
Personal consumption expenditures, investment, net exports, government expenditure
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According to Table 6.7, how often have recessions occurred since the end of World War II (1945)?
Which of the following are included in GDP, and which are not?
a. The cost of hospital stays
b. The rise in life expectancy over time
c. Child care provided by a licensed day care center
d. Child care provided by a grandmother
e. A used car sale
f. A new car sale
g. The greater variety of cheese available in supermarkets
h. The iron that goes into the steel that goes into a refrigerator bought by a consumer.
Why do you suppose that U.S. GDP is so much
higher today than 50 or 100 years ago?
Explain briefly whether each of the following would cause GDP to overstate or understate the degree of change
in the broad standard of living.
a. The environment becomes dirtier
b. The crime rate declines
c. A greater variety of goods become available to consumers
d. Infant mortality declines
The Czech Republic has a GDP of 1,800 billion
koruny. The exchange rate is 25 koruny/U.S. dollar. The Czech population is 20 million. What is the GDP per capita of the Czech Republic expressed in U.S. dollars?
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