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Chapter 6: Q 13. (page 160)

Would you usually expect GDP as measured by

what is demanded to be greater than GDP measured by

what is supplied, or the reverse?

Short Answer

Expert verified

It would be the same.

Step by step solution

01

Step 1. GDP

Gross domestic product is the value of final goods and services produced in a region in a given period.


02

Step 2. Explanation

Gross domestic product can be measured either by the sum of what is bought into the economy using the expenditure approach or by the income earned over what is produced using the income approach.

Whether GDP is measured by demand or by supply, it should be the same. This is because of every market requires buyers and sellers.

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Most popular questions from this chapter

Which of the following are included in GDP, and which are not?

a. The cost of hospital stays

b. The rise in life expectancy over time

c. Child care provided by a licensed day care center

d. Child care provided by a grandmother

e. A used car sale

f. A new car sale

g. The greater variety of cheese available in supermarkets

h. The iron that goes into the steel that goes into a refrigerator bought by a consumer.

U.S. macroeconomic data are among the best in the world. Given what you learned in the Clear It Up "How do statisticians measure GDP?", does this surprise you, or does this simply reflect the complexity of a modern economy?

Should people typically pay more attention to their

real income or their nominal income? If you choose the latter, why would that make sense in today’s world? Would your answer be the same for the 1970s?

The Central African Republic has a GDP of 1,107,689millionCFA francs and a population of 4.862million. The exchange rate is 284.681CFA francs per dollar. Calculate the GDP per capita of Central African Republic.

How do you convert a series of nominal economic

data over time to real terms?
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