1 Which of the following will be counted in this year?s GDP? Choose one or more: A

1 Which of the following will be counted in this year?s GDP? Choose one or more: A. You bought a new Wii at GameStop last year and resold it on eBay this year. B. You purchase an Investing for Dummies book at Barnes & Noble. C. You purchase a historic home without the help of a real estate agent. D. You detail your car so it is spotless inside and out. E. Your purchase a new hard drive for your old laptop. F. Your therapist does $300 of physical therapy but does not report it.G. Apple buys 1,000 motherboards for use in making new computers.H. Toyota produces 10,000 new Camrys that remain unsold at the end of the year.2. To which component of GDP expenditure does each of the following belong?a. Swiss chocolates imported from Europe:blank.png (Consumption, Investment, Government Purchases, or Net Export) b. a driver?s license you receive from the Department of Motor Vehicles: blank.png(Consumption, Investment, Government Purchases, or Net Export) c. a candle you buy at a local store: blank.png(Consumption, Investment, Government Purchases, or Net Export) d. a new home:blank.png (Consumption, Investment, Government Purchases, or Net Export)3. A mechanic builds an engine and then sells it to a customized body shop for $7,000. The body shop inserts the engine into the car, and resells it to a dealer for $20,000. The dealer then sells the finished vehicle for $35,000.a. When the consumer drives off with the car, GDP increases by blank.png$_____.b. What is the value added by the mechanic? (Assume that the value of the materials used to build it is zero.) blank.png$_____.c. What is the value added by the body shop? blank.png$_____.d. What is the value added by the dealer? blank.png$____.e. The total value added isblank.png (less than/equal to/ greater than) the amount that GDP increased.4. Fill in the missing data in the following table. 5. What can cause nominal GDP to rise? (Increase in inflation/decrease in inflation/decrease in production)What causes real GDP to rise? (Increase in inflation/decrease in inflation/decrease in production/increase in production)6. Suppose that after a period of slow but positive increases in GDP, the United States? Bureau of Economic Analysis reports negative GDP growth for the fourth quarter of the year. How is GDP data being used in this situation?A. to measure business cyclesB. to measure economic growthC. to measure living standards7. Qatar, a small Middle Eastern nation, has a per capita GDP of approximately $100,000. This makes Qatar one of the world?s richest countries, despite its ranking only around 50th among nations on the overall GDP list.How is GDP data being used in this situation?A. to measure business cyclesB. to measure economic growthC. to measure living standards8. Based on the information in the table, calculate the total spending on durable goods, non-durable goods, and services.Total spending on durable goods = blank.png$ ____Total spending on non-durable goods = blank.png$ _____Total spending on services = blank.png$______9.You want to know how quickly things are improving in your home country of Chiplandia, and you have the GDP data provided in the table. What is the rate of nominal GDP growth?10.You have been asked to assist the president of Darlinia, a small mountainous nation, in calculating the price level in Darlinia and how quickly prices are changing.Price level last year: 201 Price level this year: 212Based on the provided data, what is the growth rate in the overall price level from last year to this year? _____%The change in the price level means that prices areblank.png (rising/falling)11.You are trying to explain to your friends the importance of using real GDP to measure economic health over time, but some of them still insist that nominal GDP is equally good. Use the data given below to show your friends the difference in real and nominal GDP.Nominal GDP (millions of dollars) = $9,100 Price level (GDP deflator) = 88What is real GDP given the nominal GDP and price level (GDP deflator)?Real GDP = blank.png$ ______12. The graph above shows real GDP in the United States from 1967 to 2011, in billions of 2011 dollars. Over this time, the citizens of the U.S. have hadblank.png (increase/decrease/no change) in their standards of living.13. The graph above measures real GDP in the United States from 1967 to 2011, measured in 2011 dollars. Since 1967, how many economic contractions has the U.S. economy experienced? A. 0B. 6C. 7D. 814. Suppose that nominal GDP was $14,582 billion in 2010, and that the price levels in 2010 and 2011 were 111 and 113, respectively. What was the growth rate in real GDP from 2010 to 2011? ____%