The following provides data for an economy in a certain year. Consumption expenditures$1,000Imports$600Government purchases of goods and services$700Construction of new homes and apartments$500Sales of existing homes and apartments$600Exports$500Government payments to retirees$200Household purchases of durable goods$300Beginning-of-year inventory$500End-of-year inventory$600Business fixed investment$300 Given the data, compute the value of GDP.
A. $2,600
B. $2,400
C. $2,700
D. $2,500
Answer: D
You might also like to view...
Assume the economy is initially in equilibrium with real GDP equal to potential GDP
Other things equal, if the economy enters a recession and there are no automatic stabilizers, the IS curve would shift to the ________, and the shift would be equal to ________. A) right; decline in investment spending B) left; decline in investment spending C) right; decline in investment spending times the multiplier D) left; decline in investment spending times the multiplier
When the cost curves have U-shapes, at the point where marginal cost equals average total cost:
a. b and c. b. marginal cost is rising. c. average total cost is at its minimum. d. average variable cost is falling. e. the fixed cost has been fully depreciated.
If you use $1,000 to purchase silver bullion, which you plan to keep in a safe, you are using money as:
A. a store of value. B. a unit of account. C. bank reserves. D. a medium of exchange.
According to economists, economic self-interest:
A. is a reality that underlies economic behavior. B. has the same meaning as selfishness. C. means that people never make wrong decisions. D. is usually self-defeating.