GDP understates the amount of economic production in the United States because it excludes:
A. Spending for the U.S. military
B. Transfer payments
C. Purchases of stocks and bonds
D. Work performed by people for their own benefit
D. Work performed by people for their own benefit
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If a country experiences a real GDP growth rate of 4 percent, real GDP will double in
A) 14 years. B) 23.3 years. C) 25 years. D) 35 years. E) 17.5 years.
A favorable balance of trade occurs when:
a. goods exports are greater than goods imports. b. goods imports are greater than goods exports. c. international trade is an increasing share of total output. d. the balance on capital account equals the balance on current account. e. unilateral transfers are positive.
Consumption goods that are produced, but not sold, become investment goods by default
Indicate whether the statement is true or false
Recessions in South Korea and Indonesia will cause
a. an upward movement along the United States's AD curve b. a downward movement along the United States's AD curve c. the United States's AS curve to shift to the right d. the United States's AD curve to shift to the left e. the United States's AD curve to shift to the right