national accounts & GDP (L1,L2)

Question 1

macroeconomics

Answer 1

study of the economy as a whole

Question 2

what submodels do macro models rely on

Answer 2

consumers,firms,gov
financial vs non financial sectors
SR,LR

Question 3

how do we test good and bad models

Answer 3

estimate regression on the data
stimulate models under different scenarios (shocks)
estimate regressions using stimulated data

Question 4

gdp

Answer 4

gross domestic product
market value of the final goods and services produced in a country in a given time period
before deducting depreciation
market value= price x quantity
only production in that country
C+I+G+X-M

Question 5

approaches to calculating GDP

Answer 5

expenditure
income

Question 6

what does the blue book separate income into

Answer 6

compensation of employees
gross operating surplus
mixed income

Question 7

nominal GDP

Answer 7

gdp when inflation is not accounted for

Question 8

real GDP

Answer 8

considering inflation
1) base year has an index of 100
2)comparing year is 100+ % increase
3)use nominal gdp for that year and multiply by 100/new price index

Question 9

limitations of gdp

Answer 9

only considers goods bought in markets
doesn’t consider household production or black markets
doesn’t look at life expectancy, environment, human rights

Question 10

alternatives to gdp

Answer 10

HDI (human development index)
IHDI
SPI (social progress index)

Question 11

gdp (income approach)

Answer 11

gdi + taxes

Question 12

gdi (gross domestic income)

Answer 12

compensation of employees
gross operating surplus
mixed income

Question 13

Gross operating surplus

Answer 13

GDI -compensations-mixed income