曼昆宏观经济学英语课后题答案(6)

2. Differentiate between gross domestic product (GDP) and gross national product (GNP).

RESPONSE:

ANSWER: GDP is the value of all final goods and services produced within a country in a given year; while GNP is the total income earned by a nation's permanent residents or nationals (that is, Canadians). GNP differs from GDP by including income that citizens of the nation (Canada) earned aboard, and excluding income that foreigners earn in the particular country (E.g. in Canada).

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3. Differentiate between real GDP and nominal GDP.

RESPONSE:

ANSWER: Nominal GDP is the value of all final goods and services produced within a country

in a year and valued at current prices; and real GDP is the GDP valued at constant base year prices. Real GDP is not affected by changes in the level of prices, so it reflects only changes in the amounts being produced.

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4. Explain why GDP is not considered a perfect measure of well- being?

RESPONSE:

CHAPTER 24: MEASURING THE COST OF LIVING

ANSWER: GDP is not considered a perfect measure of well-being because some of the

factors that contribute to a good life are omitted. These would include: leisure time, the quality of the environment, the distribution of income, and the production of goods and services that did not pas through the market (for example, housework done by the homemaker, and volunteer work)

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5. How do economists measure economic growth?

RESPONSE:

ANSWER: Economists measure economic growth as the percentage change in real GDP from

one period to another. This is because changes in real GDP reflect only changes in the amounts being produced.

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True/False