Which of the following is true regarding the measurement of GDP?
A) Wages and profit income are used in the income approach to GDP.
B) Wages and consumption are used in the expenditure approach to GDP.
C) Consumption and investment are used in the income approach to GDP.
D) Government expenditure is only counted in the income approach to GDP.
E) Investment and wages are expenditures, and are therefore are used in the expenditure approach to GDP.
A
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On the graph above, suppose the economy is at point F when there is a permanent positive supply shock. The new long-run equilibrium is at point ________
A) F B) H C) I D) G E) none of the above
Which of the following is a reason for the Keynesian view that monetary policy plays a minor role in affecting the economy?
a. The money demand curve is vertical. b. The investment curve is very steep. c. The money demand curve is horizontal at any interest rate. d. The monetary rule.
A monopolistically competitive market is marked by the barriers to entry of new firms in the long run
a. True b. False Indicate whether the statement is true or false
The PE ratio is determined by dividing the earnings per share by the current market price of the stock
a. True b. False Indicate whether the statement is true or false