Download Chapter 10: Economic Performance

Chapter 10: Economic Performance
Section 1: Gross Domestic Product
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How are national income and product accounts (NIPAs) used by macroeconomists?
Explain the 3 components of Gross Domestic Product:
A. Final Output
B. Current Year
C. Output Produced Within National Borders
Explain the four sectors of the product market used to make up the GDP (Output-Expenditure Model):
A. Personal Consumption Expenditures
B. Gross Investment
C. Government Purchases
D. Net Exports
What is the difference between the Nominal GDP and the Real GDP.
How do economists use price indexes?
Explain the following limitations on using the GDP as an accurate measure of economic growth:
A. Accuracy and Timeliness of Data
B. Nonmarket Activities
C. Underground Economcy
D. “Goods” and “Bads”
Explain each of the following additional accounts used to measure the nation’s economy:
A. Gross National Product
B. Net National Product
C. National Income
D. Personal Income
E. Disposable Personal Income
Section 2: Business Cycles
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Explain the 4 phases of the Business Cycle:
A. expansion (recovery)
B. peak
C. contraction (recession)
D. trough
Explain each of the following influences on the Business Cycle:
A. business investment
B. money and credit
C. Public expectations
D. External Factors
Define each of the 3 economic indicators used to determine what phase the economy is in:
A. leading indicators
B. coincident indicators
C. lagging indicators
Section 3: Economic Growth
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How is real GDP per capita used to determine economic growth?
How are the following impacted by our nation’s economic growth:
A.
Standard of living
B. Global Markets
C. Domestic Resources
3. What impact does each of the following have on economic growth:
A. natural resources
B. Human resources
C. Capital resources
D. Entrepreneurship
4. How do the following impact labor productivity?
A. Technological Advances
B. Capital Deepening (capital-to-labor ratio)
C. Educated and skilled labor force
5. What has happened to the labor productivity levels in the US since 1960?