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Questions and Answers
Which of the following is NOT included in the calculation of Gross Domestic Product (GDP)?
Which of the following is NOT included in the calculation of Gross Domestic Product (GDP)?
- Intermediate goods (correct)
- Government spending
- Exports
- Final goods
What is the difference between real and nominal GDP?
What is the difference between real and nominal GDP?
- Real GDP is measured quarterly, while nominal GDP is measured annually
- Real GDP includes government spending, while nominal GDP does not
- Real GDP is adjusted for inflation, while nominal GDP is not (correct)
- Real GDP only considers domestic transactions, while nominal GDP includes international transactions
What does the term 'value added' mean in the context of GDP?
What does the term 'value added' mean in the context of GDP?
- The difference between real and nominal GDP
- The value of imports subtracted from the value of exports
- The total value of all goods and services produced in a country
- The additional value created at each stage of production (correct)
What does the spending category 'NX' represent in GDP calculation?
What does the spending category 'NX' represent in GDP calculation?
What does a trade surplus represent in the context of GDP?
What does a trade surplus represent in the context of GDP?
Which one of the following transactions would NOT be counted in the calculation of GDP?
Which one of the following transactions would NOT be counted in the calculation of GDP?
Which of the following accurately describes the concept of value added in the context of GDP?
Which of the following accurately describes the concept of value added in the context of GDP?
Which of the following spending categories of GDP represents government spending?
Which of the following spending categories of GDP represents government spending?
Which one of the following accurately describes the difference between real and nominal GDP?
Which one of the following accurately describes the difference between real and nominal GDP?
What does the term 'investment' mean in the context of GDP?
What does the term 'investment' mean in the context of GDP?
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