The value-added approach of calculating GDP:
A. is an alternative, and equally valid, way of avoiding the problem of double-counting.
B. lets us break down the total value paid and see how much of it was created at each step of the production process.
C. is especially useful when thinking about services involved in the resale of existing goods.
D. All of these are correct.
Answer: D
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Macroeconomics Chapter 7
- When maximizing economic growth is a country's goal:
- GDP per capita:
- Which of the following measures can give some indication of the quality of life in an economy?
- The Green GDP:
- An example of a negative externality is:
- Negative externalities:
- The size of the underground economy is larger when:
- In the United States the underground economy has been valued at around:
- On average across the world, the underground economy is worth about
- The difference between black market and gray market activities is:
- The many goods and services that are sold below the radar, outside of official records take place in the:
- An example of something that might be sold in the underground economy is:
- Which of the following activities would be included in GDP?
- Which of the following activities would be included in GDP?
- An activity that would not be included in GDP would be:
- A major category of economic activity that is not counted as part of GDP is:
- Of the world's countries, which of the following can be said of their real GDP growth rates in recent years?
- The government office that declares official periods of recession and depression is the:
- A depression is:
- A recession is characterized by:
- A period of significant decline in economic activity, marked by falling GDP, rising unemployment, and an increased number of bankruptcies, is called:
- If a country experiences a negative growth rate in real GDP, it means:
- If Italy's real GDP fell from $2.2 trillion one year to $1.9 trillion the next, the annual growth rate would be:
- If China's real GDP grew from $7 trillion one year to $8 trillion the next, the annual growth rate would be:
- If U.S. real GDP grew from $12 trillion one year to $12.7 trillion the next, the annual growth rate would be:
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