CHAPTER 26 QUESTIONS WITH CORRECT ANSWERS 2025

CHAPTER 26 QUESTIONS WITH
CORRECT ANSWERS 2025
UsingWtheWnationalWspendingWapproachWtoWmeasuringWGDP,WtheWsocialWsecurityWchecksWtheWgovernmen
tWsendsWretireesWeachWmonthWgetWincludedWinWGDPWasWpartWof:W

A.Wconsumption.

B.Wnothing;WtheyWareWnotWincludedWasWpartWofWGDP.

C.Winvestment.

D.WgovernmentWpurchases.W-WcorrectWanswer-B.Wnothing;WtheyWareWnotWincludedWasWpartWofWGDP.



(Table:WComponentsWofWGDP)WUseWtheWdataWinWthisWtableWtoWcalculateWtheWcontributionWofWrentWandWin
terestWincomeWtoWGDP.W

A.W$10,806Wbillion

B.W$14,380Wbillion

C.W$8,916Wbillion

D.W$6,032WbillionW-WcorrectWanswer-C.W$8,916Wbillion



WhichWofWtheWfollowingWactivitiesWisWcountedWasWpartWofWU.S.WGDP?W

A.WJoeWwatchesWaWfreeWvideoWonWYouTube.

B.WJeffWstaysWinWaWhotelWinWColoradoWwhileWonWaWskiingWtrip.

C.WJakeWtakesWaWvacationWatWaWCaribbeanWresort.

D.WJohnWpurchasesWaWcounterfeitWDVD.W-WcorrectWanswer-
B.WJeffWstaysWinWaWhotelWinWColoradoWwhileWonWaWskiingWtrip.



TheWvalueWofWaWcountry'sWGDPWexceedsWthatWofWtheWcountry'sWGNPWifWtheWvalueWofWthe:W

A.Wcountry'sWimportsWexceedWtheWvalueWofWitsWexports.

B.WoutputWproducedWbyWforeignWworkersWinWtheWcountryWexceedsWtheWvalueWofWoutputWproducedWbyWth
eWcountry'sWpermanentWresidentsWinWotherWcountries.

C.Wcountry'sWexportsWexceedsWtheWvalueWofWitsWimports.

D.WoutputWproducedWbyWtheWcountry'sWpermanentWresidentsWproducedWinWotherWcountriesWexceedsWthe
WvalueWofWoutputWproducedWbyWforeignWworkersWinWtheWcountry.W-WcorrectWanswer-

, B.WoutputWproducedWbyWforeignWworkersWinWtheWcountryWexceedsWtheWvalueWofWoutputWproducedWbyWth
eWcountry'sWpermanentWresidentsWinWotherWcountries.



WhichWofWtheWfollowingWisWNOTWconsideredWaWgovernmentWpurchase?

A.WunemploymentWchecks

B.WleveesWbuiltWbyWtheWArmyWCorpsWofWEngineers

C.WsalariesWforWpublicWschoolWteachers

D.WnewWriflesWforWtheWmilitaryW-WcorrectWanswer-A.WunemploymentWchecks



(Table:WThree-
GoodWEconomyWII)WSupposeWanWeconomyWproducesWonlyWtheWthreeWfinalWgoodsWshownWinWtheWtable.WT
heWtableWgivesWinformationWonWtheWquantitiesWproducedWandWtheWpricesWofWgoodsWsoldWinW2008WandW2
009.WWhatWisWtheWgrowthWrateWofWrealWGDPWinW2009WifW2008WpricesWareWusedWinWtheWcalculationWofWrea
lWGDP?

A.W1.00%

B.W-3.71%

C.W2.94%

D.W-1.97%W-WcorrectWanswer-B.W-3.71%



InW2010,WrealWGDPWwasW$13.2WtrillionW(usingW2005Wprices)WandWnominalWGDPWwasW$14.6Wtrillion.WBased
WonWtheWGDPWdeflator,WpricesWinW2010WwereWaboutW_____WthanWpricesWinW2005.



A.W10.6%Wlower

B.9.6%Wlower

C.W9.6%Whigher

D.W10.6%WhigherW-WcorrectWanswer-D.W10.6%Whigher



(Table:WiPhones)WThisWtableWshowsWdataWforWaWcountryWproducingWonlyWiPhones.WIfW2000WpricesWareWuse
dWinWtheWcalculationWofWrealWGDP,WtheWGDPWdeflatorWforW2010Wis:

A.W900.

B.W110.

C.W90.9.