Question

State which TAP you like to replace by answering this TAP I would like to submit TAP R in replacement of my submission of Tap: write TAP number here Q.1: Match the following key terms with the right description: (10 points each) a. measures the total spending on goods and services and in 1- GDP deflator all markets in the economy. b. example, if someone pays someone else $10 to wash a 2- Consumption car, the expenditure on the car-washing service ($10) is exactly equal to the income earned from the production (Y=C+I+G + NX) of the car-washing service ($10). c. is spending by households on goods and services, with 3- Inflation Rate the exception of purchases of new housing. 4- Total income must equal Total expenditure d. is a measure of the price level calculated as the ratio of nominal GDP to real GDP times 100. e. One way to measure the economy's ------- is to compute the percentage increase in the GDP deflator from one year to the next. 5- Gross domestic product (GDP)

Answer 1

1)

1. GDP deflator: is a measure of the price level calculated as the ratio of nominal GDP to real GDP times 100.

2. Consumption: is spending by households on goods and services, with the exception of purchases of new housing.

3. Inflation rate: One way to measure the economy's inflation rate is to compute the percentage increase in the GDP deflator from one year to next.

4.Total income must equal total expenditure: example, if someone pays someone else $10 to wash a car, the expenditure on the car washing service ($10) is exactly equal to the income earned from the production of car washing service ($10).

5. Gross domestic product (GDP): measures the total spending on goods and services and in all markets in the economy.