Homework SourseINDICATE WHETHER THE FOLLOWING ARE TRUE OR FALSE AND EXPLAIN
INDICATE WHETHER THE FOLLOWING ARE TRUE OR FALSE AND EXPLAIN WHY.
In periods of rising prices real GDP will rise faster than nominal GDP.
The value of goods produced, but not sold during the year, decreases GDP.
The advantage gained in using the real GDP measure is that it removes the distortions caused by price increases.
Profits earned by General Motors by operating a factory in Brazil are included in GDP as a part of corporate profits.
Purchase of a plot of land increases nominal GDP.
If shares of IBM are sold the value of the services provided by the financial services company is a part of GDP, but the value of the stock is not.
INDICATE WHETHER THE FOLLOWING ARE TRUE OR FALSE AND EXPLAIN WHY.
In periods of rising prices real GDP will rise faster than nominal GDP.
The value of goods produced, but not sold during the year, decreases GDP.
The advantage gained in using the real GDP measure is that it removes the distortions caused by price increases.
Profits earned by General Motors by operating a factory in Brazil are included in GDP as a part of corporate profits.
Purchase of a plot of land increases nominal GDP.
If shares of IBM are sold the value of the services provided by the financial services company is a part of GDP, but the value of the stock is not.
INDICATE WHETHER THE FOLLOWING ARE TRUE OR FALSE AND EXPLAIN WHY.
In periods of rising prices real GDP will rise faster than nominal GDP.
The value of goods produced, but not sold during the year, decreases GDP.
The advantage gained in using the real GDP measure is that it removes the distortions caused by price increases.
Profits earned by General Motors by operating a factory in Brazil are included in GDP as a part of corporate profits.
Purchase of a plot of land increases nominal GDP.
If shares of IBM are sold the value of the services provided by the financial services company is a part of GDP, but the value of the stock is not.
Solution
1) False because nominal gdp rise is the addition of price growth and outout growth where real GDP growth is only output growth.
2)False because GdP is only with the production process, not related with sale.
3)False because it takes account only the output facto or real factor for growth
4)It will be a part of Brazil GDP
5)False because there is no production of goods and services. However broker commision will be a part of GDP.
6False
