Podcast
Questions and Answers
What is the purpose of selecting a reference base year in GDP calculation?
What is the purpose of selecting a reference base year in GDP calculation?
- To compare the prices of goods and services across different years (correct)
- To compare the GDP of different countries
- To express the value of final goods and services in terms of the prices of that same year
- To identify the changes in GDP due to inflation
What is the difference between real GDP and nominal GDP?
What is the difference between real GDP and nominal GDP?
- Real GDP is the value of goods and services produced in a given year, while nominal GDP is the total value of goods and services produced in the economy
- Real GDP is calculated using the expenditure approach, while nominal GDP is calculated using the income approach
- Real GDP is the total value of goods and services produced in the economy, while nominal GDP is the value of goods and services produced in a given year
- Real GDP is the value of goods and services produced in a given year, expressed in terms of the prices of that same year, while nominal GDP is the value of goods and services produced in a given year, expressed in terms of the prices of the base year (correct)
Why are real GDP and nominal GDP the same in the base year?
Why are real GDP and nominal GDP the same in the base year?
- Because the quantities of goods and services produced do not change over time
- Because the base year and the current year are the same thing (correct)
- Because the prices of goods and services do not change over time
- Because the government spends more on defence in the base year
What is the formula used to calculate GDP using the expenditure approach?
What is the formula used to calculate GDP using the expenditure approach?
What is the reason for calculating real GDP?
What is the reason for calculating real GDP?
What is the purpose of multiplying the quantities of goods and services by the prices of the base year?
What is the purpose of multiplying the quantities of goods and services by the prices of the base year?
What is the formula to calculate GDP using the Expenditure Approach?
What is the formula to calculate GDP using the Expenditure Approach?
What does a negative Net exports (NX) value indicate?
What does a negative Net exports (NX) value indicate?
What is the key difference between the Income Approach and the Expenditure Approach?
What is the key difference between the Income Approach and the Expenditure Approach?
What is the percentage of GDP accounted for by Consumption expenditure?
What is the percentage of GDP accounted for by Consumption expenditure?
What is the name of the approach that calculates GDP by adding up the incomes earned by households for their services?
What is the name of the approach that calculates GDP by adding up the incomes earned by households for their services?
What is the term for GDP calculated using the Expenditure Approach?
What is the term for GDP calculated using the Expenditure Approach?
According to the income approach and expenditure approach, what should be ideally equal?
According to the income approach and expenditure approach, what should be ideally equal?
What does a large statistical discrepancy between the income approach and expenditure approach indicate?
What does a large statistical discrepancy between the income approach and expenditure approach indicate?
What is the main difference between GDP and GNP?
What is the main difference between GDP and GNP?
Why do incomes tend to be reported accurately, while expenditures are estimated?
Why do incomes tend to be reported accurately, while expenditures are estimated?
What is the purpose of looking at the statistical discrepancy?
What is the purpose of looking at the statistical discrepancy?
What is the sum of incomes typically compared to in the expenditure approach?
What is the sum of incomes typically compared to in the expenditure approach?
