Home / Questions / GDP may be computed using the expenditure or value-added approaches. 61) U.S. GDP exclud
GDP may be computed using the expenditure or value-added approaches.
61) U.S. GDP excludes underground activities.
62) A German tourist visits Disney World in Orlando; the expenditures made by the German tourist are included in U.S. GDP.
63) A French citizen lives in Detroit, but works in Windsor, Canada; his income is counted in U.S. GDP.
64) The expenditure approach to calculating GDP for an open economy entails adding consumption, investment, and government purchases.
65) An increase in nominal GDP implies that the country is producing a greater quantity of goods and services.
66) Intermediate goods and services are excluded in the calculation of GDP.
67) In the value added approach to calculating GDP, counting both the intermediate good and the final product would understate the contribution to GDP.
68) If nominal GDP is 100,000 and real GDP is 80,000, the GDP deflator is 115.
69) Declining real GDP for two quarters in a row is often called a recession.
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