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- Which of the following statements are correct? Select one or more: O a. Government spending on goods and services does not add to Gross Domestic Product. b. In most countries, consumers' expenditure is the biggest item in Gross Domestic Product. c. Gross Domestic Product measures the total final spending in the economy, or equivalently the total of incomes generated. O d. Gross domestic product is a stock, not a flow. e. The value of unsold goods that have been produced over the year is not included in GDP.Lumber is used to produce furniture that is sold to consumers. The lumber is counted in gross domestic product (GDP). The furniture is counted in GDP. O a final; is; an intermediate; is not O a final; is; a final; is O an intermediate; is; an intermediate; is an intermediate; is not; a final; is O an intermediate; is; a final; is not good and its value good and its valueQUESTION 6 Potential GDP Aggregate expenditure AE, 45° Y. Real GDP (Y) When real GDP is greater than Yo in the diagram above: O A. - inventories will decrease OB. ·Aggregate expenditure will be less than Real GDP OC. Aggregate expenditure will be equal to Real GDP OD. O D. inventories will increase QUESTION 7 Y G Xn $1,000 $1,400 1,400 1,400 1,400 1,400 $0 $800 -$200 2,500 5,000 7,500 10,000 2,300 3,800 5,300 6,800 1,000 1,000 1,000 1,000 -200 -200 -200 -200 Suppose you are given the data in the table above for a hypothetical economy. All data are in billions of dollars. Yis actual real GDP, and C, Ip, G, and Xn are the consumption, planned investment, government purchases, and net exports components of aggregate expenditures, respectively. Calculate the equilibrium GDP (give your answer in billions of $) Aggregate Expenditure
- Which of the following types of spending should be not included in Government Purchases, one of the four expenditure components used to measure U.S. Gross Domestic Product? Select one: O a. The federal government purchases an airplane for the U.S. Air Force. O b. The state of Louisiana pays unemployment insurance benefits to qualified unemployed persons. O c. The salaries paid to members of the U.S. Congress. Od. The state of Louisiana pays a construction company to build new roads.12) In 2018, the total consumption in the x Country was $22,400 and the total investment activities amounted to $2,340. At the same time, the government purchases were $735 and net exports were -$847. In this instance, the GDP for 2018 was: Select one: O a. $24,628 O b. $26,200 O c. $28,600 O d. $22,540If an economy is producing a level of output which is lower than the equilibrium level, planned expenditures total output and. goods and services are being produced than are being demanded. Select one: O a. exceed; more O b. are less than; fewer Oc. exceed; fewer O d. are less than; more Next page
- Disposable Income Consumption $0 $400 500 800 1,000 1,200 1,500 1,600 2,000 2,000 2,500 2,400 3,000 2,800 Refer to Exhibit 10-8. When disposable income equals $1,500, saving equals O a. -$100. O b. S1,600. O C $1,800. O d. S100.Ceteris paribus, which of the scenarios below will unambiguously lead to an increase in real GDP? O a. The production of final goods and services decreases, but prices increase. O b. The prices of final goods and services decrease. O c. The prices of final goods and services increase. O d. The production of final goods and services increases. geExhibit 15-7 Personal consumption expenditures Interest Corporate profits Government spending Depreciation GDP data Rental income Gross private domestic investment Compensation of employees Exports Imports Indirect business taxes Proprietors' income Personal taxes Social Security taxes Transfer payments In Exhibit 15-7, personal income (PI) is: O a. $6,495 billion. O b. $7,082 billion. O c. $6,013 billion. O d. $6,254 billion. Billions of dollars $5,207 425 735 1,406 830 146 1,116 4,426 870 965 553 520 886 432 376
- Which one of the following is TRUE? Select one: O a. Our productive capacity declines when net investment is less than zero. O b. Negative net investment occurs when exports are less than imports. O c. Net investment is negative when gross investment is greater than depreciation. O d. Negative net investment occurs when imports are less than exports.Based on the information presented below, what is the equation representing the saving for this economy? GDP (Y) $0 100 200 300 Cunsumption (C) $60 120 180 240 Oa. S = -60 + 0.6Y O b. S = 60+ 0.4Y O c. S = -40 +0.75Y O d. S= -60+ 0.4Y Saving (S) S-60 -20 20 60 Investment (1) $100 100 100 100Item Consumption expenditure. Investment Government expenditure on goods and services Exports of goods and services Imports of goods and services 8. Based on the data in the table, what does GDP equal? O $11,183 billion O $11.023 billion O $11.103 billion O $12.393 billion Billions of Dollars 8180 1520 1403 1290 1370