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10 2 3 1 5) The U.S. government treats the goods produced by a firm in a year that are not sold in that year

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10 2 3 1 5) The U.S. government treats the goods produced by a firm in a year that are not sold in that year as increases in inventories and includes them in that year's GDP at market prices. In other words, the government assumes that the firm itself buys those goods for future resale. With this convention in mind, place a "1" in a box if you think the statement is 100% true, place a "0" otherwise (without quotation marks, decimal places, or spaces). Ignore illegal goods and illegal activities altogether (Assume there are no illegal activities). Any good produced domestically in a year will be included in that year's GDP. Any good produced domestically in a year will be included in that year's GDP, except those produced by households for their own consumption. Any good produced domestically and sold in a year will be included in that year's GDP. Any good produced domestically and sold in a year will be included in that year's GDP, except those produced by firms that are not sold. Any good sold in a year will be included in that year's GDP. Any service sold in a year will be included in that year's GDP. Any good that is not sold in a year will be excluded from that year's GDP. 1 5) Good 1 Good 2 Good 3 Year Price Quantity Price Quantity Price Quantity 2011 4.45 100 17.80 239 19.58 34 2012 5.00 102 20.00 240 22.00 35 2013 5.25 100 21.00 241 23.10 38 2020 6.10 104 24.40 243 26.84 35 Consider the table above. It shows the prices and quantities of only three final goods produced and sold in a country. The government's national income accountants have chosen 2012 to be the base year. Fill in the following: Nominal GDP in 2011 = dollars Nominal GDP in 2012 = dollars Nominal GDP in 2013 = dollars Nominal GDP in 2020 = dollars

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