Exhibit 11-7 GDP data (billions of dollars)
Personal consumption expenditures$5,207
Interest425
Corporate profits735
Government spending1,406
Depreciation830
Rental income146
Gross private domestic investment1,116
Compensation of employees4,426
Exports870
Imports965
Indirect business taxes553
Proprietors' income520
Personal taxes886
Social Security taxes432
Transfer payments376
In Exhibit 11-7, and using the expenditures approach, gross domestic product (GDP) is:
A. $6,807 billion.
B. $7,082 billion.
C. $7,634 billion.
D. $7,637 billion.
Answer: C
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All of the following are characteristics of a battle of the sexes game except
A) each player has a tough strategy and a weak strategy. B) the tough strategy and the weak strategy differ for each player. C) each player prefers the Nash equilibrium corresponding to his or her tough strategy. D) each player prefers the same Nash equilibrium.
For a natural monopoly to exist
A) a firm must continually buy up its rivals. B) a firm must have a government-imposed barrier. C) a firm's long-run average cost curve must exhibit diseconomies of scale beyond the economically efficient output level. D) a firm's long-run average cost curve must exhibit economies of scale throughout the relevant range of market demand.
The behavior of investment and real GDP in the United States after the 1990s
A) is not consistent with the two-period model with production. B) is consistent with the effects of an increase in the government deficit in the two-period model with production. C) is consistent with the effects of an increase in optimism about future total factor productivity in the two-period model with production. D) is consistent with the effects of a decrease in the government deficit in the two-period model with production.
Costs imposed on future users of a resource are called
a. Transactions costs b. Social costs c. Private costs d. Depletion costs e. User costs