Chapter 7 GDP Assignment. Due Thursday, end of day

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Chapter 7 GDP Assignment. Due Thursday, end of day 


· Define net exports.

· Explain how U.S. exports and imports each affect domestic production.

· How are net exports determined?

· Explain how net exports might be a negative amount.


· Contrast the ideas of nominal GDP and real GDP.

· Why is one more reliable than the other for comparing changes in the standard of living over a series of years?

· What is the GDP price index and what is its role in differentiating nominal GDP and real GDP?

3. Which of the following is counted or not in this year’s GDP explain your answer in each case?

· Interest received on a Ford Motor Co. corporate bond.           

· Social Security payments received by a retired factory worker.

· Unpaid services of a family member in painting the family home

· Income of a college adviser from the counseling services provide.

· A monthly allowance a college student receives from home.

· Money received by Josh when he resells his nearly brand-new Honda automobile to Kim.

· The publication and sale of a new college textbook.        

· An increase in leisure resulting from a 2-hour decrease in the length of the workweek, with no reduction in pay.

· A $2 billion increase in business inventories.

· The purchase of 100 shares of Facebook common stock.

Assignment due Thursday end of day.

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