9Spending on the structures, equipment, and software that provide the industrial
ID: 1160318 • Letter: 9
Question
9Spending on the structures, equipment, and software that provide the industrial capacity to produce goods and services for all sectors of the economy is called:
inventory investment
business fixed investment
residential fixed investment
consumption
10Goods that are produced, but not sold, in a given year are called:
inventory investment
business fixed investment
residential fixed investment
consumption
11In year one, the GDP deflator is 100 and in year two 110. If nominal GDP in year two is $300 billion, what is real GDP for year two?
$200 billion.
$100 billion.
$272.73 billion.
$220 billion.
12The rising phase of a business cycle measured by an increase in real GDP is called:
trough.
expansion.
recession.
contraction.
inventory investment
business fixed investment
residential fixed investment
consumption
Explanation / Answer
Q9 Spending on the structures, equipment, and software that provide the industrial capacity to produce goods and services for all sectors of the economy is called business fixed investment.
Q10 Goods that are produced, but not sold, in a given year are called inventory investment.
Q11 GDP deflator in year 1 = 100
GDP deflator in year 2 = 110
Nominal GDP in year 2 = 300
Real GDP = Nominal GDP*(GDP deflator in year 1/GDP deflator in year 2)=300*100/110
= 272.73
Q12 The rising phase of a business cycle measured by an increase in real GDP is called is called expansion.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.