Chapter 21 Post Quiz
Measuring Economic Activity

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. GDP	a. GDP at current prices.
	2. Value added	b. the difference between a firm's sales and its purchases of inputs to the production process.
	3. Double counting	c. measures the amount of capital that has been used in a year.
	4. Nominal GDP	d. nominal GDP divided by the GDP deflator.
	5. Real GDP	e. government payments to individuals that are not made in exchange for goods or services supplied.
	6. Real GDP	f. C+I+G+X
	7. Investment	g. an index of the volume or quantity of goods and services provided.
	8. Depreciation	h. can be avoided by only including the final goods and excluding the intermediate goods.
	9. Transfer payments	i. the difference between imports and exports.
	10. Net exports	j. a price index.
	11. Net domestic product	k. obtained when one subtracts depreciation from GDP.
	12. GNP	l. the total output produced with inputs owned by the residents of a country.
	13. CPI	m. the term used to describe an addition to a nation's capital stock.