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Judged by international standards, the national debt of the United States, in terms of its...

Question:

Judged by international standards, the national debt of the United States, in terms of its national debt as a percentage of GDP is

the highest among the developed nations.

the lowest among the developed nations.

about average among the developed nations.

below average among the developed nations.

The local Subaru dealership has an increase in inventory of 17 cars in 2008. In 2009 it sells all 17 cars.

The value of the increased inventory will be counted as part of the investment component of GDP in 2008, and the value of the 17 cars sold in 2009 will reduce the investment component in 2009 GDP.

The value of the 17 unsold cars will be deducted from the investment component of GDP in 2008, and the value of the 17 cars sold in 2009 will increase the consumption component in 2009 GDP.

The value of the increased inventory will be counted as part of GDP in 2008 and the value of the 17 cars sold in 2009 will cause 2008 GDP to increase.

The value of the increased inventory will not affect 2008 GDP, but the sale of the cars in 2009 will cause 2009 GDP to increase.

Gross Domestic Product:

Gross Domestic Product is the production of goods and services in a year expressed in monetary terms. Every nation aims as higher production so as to increase the value of GDP which is termed as economic growth.

Answer and Explanation:

Judged by international standards, the national debt of the United States, in terms of its national debt as a percentage of GDP is

the highest among the developed nations.

As per the reports of 2019, the US National Debt is US$22 trillion which makes 106% of US GDP. It is highest amongst the developed nations.


The local Subaru dealership has an increase in inventory of 17 cars in 2008. In 2009 it sells all 17 cars.

The value of the increased inventory will be counted as part of GDP in 2008 and the value of the 17 cars sold in 2009 will cause 2008 GDP to increase.

The GDP estimation of 2008 will include the manufacturing of those 17 cars because it was produced in 2008. In 2009, it just changed ownership. By definition, GDP is the monetary value of goods and services produced in a year.


Learn more about this topic:

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Overview of the Gross Domestic Product

from CLEP Social Sciences and History: Study Guide & Test Prep

Chapter 59 / Lesson 2
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