Chapter 6: Q. 14 (page 160)
Why must you avoid double counting when measuring GDP?
Double counting can lead to incorrect calculations in gross domestic product (GDP).
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According to Table 6.7, how long has the average recession lasted since the end of World War II?
Should people typically pay more attention to their
real income or their nominal income? If you choose the latter, why would that make sense in today’s world? Would your answer be the same for the 1970s?
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.
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?
According to Table 6.7, how long has the average expansion lasted since the end of World War II?
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