GDP Study Guide 2026
Everything you need to pass the GDP exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 GDP Exam Format at a Glance
📚 GDP Topics to Study (69)
✍️ Sample GDP Questions & Answers
1. If GDP equals $20 trillion and GNP equals $20.4 trillion, what can we infer about the US economy?
When GNP exceeds GDP, net factor income from abroad is positive, meaning Americans' overseas earnings exceed foreign residents' earnings inside the US.
2. Which of the following is an example of a 'transfer payment' that is excluded from GDP?
Transfer payments redistribute income without producing new goods or services; they are excluded from G in the GDP formula.
3. An economy's nominal GDP doubles over a decade while its real GDP increases by only 40%. The most accurate conclusion is:
The gap between 100% nominal growth and 40% real growth indicates roughly 60 percentage points was driven by rising price levels.
4. Which of the following is a primary component of the income approach to calculating GDP?
The income approach to GDP measures the total income generated by production. A major component of this approach is the compensation of employees, which includes wages, salaries, and other benefits paid to workers. The other options are components of the expenditure approach.
5. A rise in the price of domestically produced military equipment would affect:
Military equipment is part of government (G) spending in GDP, so its price is captured in the GDP deflator, but it does not appear in the consumer-focused CPI basket.
6. An economist is calculating a country's Gross Domestic Product (GDP) using the expenditure approach. Which of the following transactions would be included in the calculation?
The expenditure approach to GDP is calculated as C + I + G + (X-M). The purchase of a newly built house is considered part of Investment (I) and is therefore included in the GDP calculation. The purchase of tires by a car manufacturer is an intermediate good, social security is a transfer payment, and buying stocks is a financial transaction; none of these are included in GDP.