Economic Growth Indicators and Inflation Causes

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What is the formula to calculate GDP?

Sum of all wages, rent, interest, and profits

Total National Income - Sales Taxes - Depreciation

Total National Income + Sales Taxes + Depreciation + Net Foreign Factor Income (correct)

Total National Income + Depreciation

What is Depreciation according to the economy?

The difference between the total income that a country’s citizens and companies generate in foreign countries

Consumer taxes imposed by the government on the sales of goods and services

The cost allocated to a tangible asset over its useful life (correct)

The total income that a country’s citizens and companies generate in foreign countries

What is included in the calculation of Total National Income?

Interest income, Unincorporated business net income, and Rental income

Wages and benefits paid to employees, Corporate and government profits before taxes, Interest income, Unincorporated business net income, and Rental income (correct)

Indirect business taxes, and subsidies

Wages and benefits paid to employees, and Corporate profits before taxes

What is the Expenditure approach in measuring GDP?

The sum of the final uses of goods and services measured in purchasers' prices Signup and view all the answers

What happens when a good is produced and unsold?

The standard accounting convention is that the producer has bought the good from themselves Signup and view all the answers

What is Net Foreign Factor Income?

The difference between the total income that a country’s citizens and companies generate in foreign countries, versus the total income foreign citizens and companies generate in the domestic country Signup and view all the answers

What does the abbreviation 'GDP' stand for in economic terms?

Gross Domestic Product Signup and view all the answers

Which component of GDP includes government expenditures on goods and services?

G Signup and view all the answers

What does the 'I' component of GDP represent?

Investment in capital equipment and housing Signup and view all the answers

What distinguishes the expenditure approach from the income approach in GDP calculation?

The starting point of calculations Signup and view all the answers

How is unemployment defined in economic terms?

Individuals of working age who are able to work but are not working currently Signup and view all the answers

What is the working age range for some countries when considering unemployment?

16 years or more Signup and view all the answers

What is the GDP deflator used for?

Comparing gross domestic products of different years by adjusting for inflation or deflation Signup and view all the answers

How is the real GDP growth rate calculated?

(Real GDP in year n) − (Real GDP in year n − 1) Signup and view all the answers

What does GDP Per Capita represent?

The average per capita income, living standards, and worker productivity Signup and view all the answers

What does the actual GDP measure?

The current GDP of a country Signup and view all the answers

How is the potential GDP calculated?

By calculating the GDP under ideal conditions Signup and view all the answers

Which approach is used to calculate GDP by reflecting the value added during production processes?

Production (Value Added) approach Signup and view all the answers

How is Gross Value Added (GVA) calculated?

By subtracting intermediate consumption from the gross value of output Signup and view all the answers

What does the Value of Output include?

Both total sales and changes in the inventory Signup and view all the answers

How do economic activities (industries) contribute to calculating GDP?

By classifying them into sectors and calculating the output using specific methods Signup and view all the answers

Which term refers to the Gross Domestic Income (GDI) according to the text?

Primary incomes generated by goods and services Signup and view all the answers

What is the relationship between Gross Domestic Product (GDP) and Gross Value Added (GVA)?

GVA is equal to GDP Signup and view all the answers

How is Gross Value of Output calculated at factor cost?

By deducting each sector's intermediate consumption from the gross output value Signup and view all the answers

What are the different situations that can be described by a specific economic term?

Inflation Signup and view all the answers

How is Gross Domestic Product (GDP) categorized?

By the monetary value of goods and services produced within a country Signup and view all the answers

What is measured by Consumer Spending indicators?

How much capital consumers feed back into the economy Signup and view all the answers

What is indicated by Industry Performance indicators?

GDP by industry Signup and view all the answers

What is indicated by International Trade and Investment indicators?

Balance of payments between trade partners Signup and view all the answers

What do Special indicators include?

Distribution of personal income and global value chains Signup and view all the answers