Answer the following statements true (T) or false (F)
1) Exports are subtracted from imports in calculating U.S. GDP because exports are not available for domestic consumption.
2) The purchase of Walmart stock is a part of gross investment, but not of net investment.
3) The purchase of Walmart stock is a part of gross investment, but not of net investment.
4) Personal income usually exceeds disposable income.
5) Welfare payments to low-income families are included in national income.
1) F
2) F
3) F
4) T
5) F
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Between 2017 and 2018, if an economy's exports rise by $8 billion and its imports fall by $8 billion, by how much will GDP change between the two years, all else equal?
A) Net exports will increase GDP by $8 billion. B) The increase in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP. C) Net exports will increase GDP by $16 billion. D) Net exports will decrease GDP by $8 billion.
Growth in real wage rates is closely tied to growth in labor productivity
a. True b. False Indicate whether the statement is true or false
How do nonprice-level factors that change total spending in an economy affect the aggregate demand curve?
a. The entire curve shifts leftward or rightward. b. There is movement along the curve. c. The curve becomes perfectly vertical. d. The entire curve develops an upward slope.
When nations specialize according to their comparative advantage
A) Total production and consumption in the world increase. B) Consumption rises in one country but must fall in all others. C) Total world production rises but total consumption in the world declines. D) none of the above