GDP can be calculated by adding:

• consumption, gross investment, government purchases, and imports
• gross investment, government purchases, consumption, and net exports
• consumption, gross investment, government purchases, and exports
• consumption, gross investment, government purchases, exports, and import

In the treatment of Canadian exports and imports, national income accountants:

Multiple Choice

• subtract both exports and imports in calculating GDP
• add both exports and imports in calculating GDP
• add exports and ignore imports in calculating GDP
• subtract exports, but add imports, in calculating GDP
• add exports, but subtract imports, in calculating GDP

Real GDP measures:

Multiple Choice

• current output in current dollars
• current output in constant dollars from a given year
• GDP per person in constant dollars from a given year
• GDP per person in current dollars
• current output adjusted to take account of price differences between countries

Professor Shields grows tomatoes in her garden for her family and friends. This activity is:

Multiple Choice

• included in GDP because it reflects production
• excluded from GDP because it is not a productive activity
• excluded from GDP to avoid double counting
• excluded from GDP because no money changes hands
• excluded from GDP because an intermediate product is involved

If the consumer price index rises from 300 to 333 in a particular year, the rate of inflation in that year is:

Multiple Choice

• 33 percent
• 11 percent
• 10 percent
• 99 percent
• 91 percent