Page 61 - Macroeconomics. book docx_Neat

Review Question

1. The output approach measures national income through:

A. Spending
B. Income

C. Productions

D. Saving

2. GDP measures production based on:

A. Nationality

B. Ownership

C. Location
D. Income

3. GDP includes only:
A. Intermediate goods

B. Final goods

C. Raw materials

D. Financial assets

4. Double counting occurs when:

A. Final goods are counted

B. Intermediate goods are counted more than once
C. Prices change

D. Imports increase

5. Value added equals:

A. Output minus intermediate inputs
B. Output plus inputs

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