GDP, according to the income method, is the sum of:
a. wages, rent, interest, and profits.
b. consumption, gross investment, depreciation, and net exports.
c. depreciation, net factor income from abroad, and indirect business taxes.
d. gross investment, wages, profits, rent, and indirect business taxes.
e. consumption, profits, interest, rent, and net exports.
a
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Eventually the process of capital deepening comes to a halt as depreciation catches up with total saving
Indicate whether the statement is true or false
Over a year, the money supply in a nation grew by 6 percent, while velocity fell by 1 percent and real GDP rose by 2 percent. This results in an inflation over the year of ________ percent
A) 9 B) 7 C) 5 D) 3
Which of the following observations is true?
a. State governments are the shareholders of the Fed. b. The Fed chairman is appointed for a ten year term. c. FOMC decisions largely determine short-term interest rates. d. Member banks proportionately share all of Federal Reserve's profits.
Financial intermediaries make the allocation of resources more efficient by
A. Lending or investing the savings they hold. B. Reducing search and information costs in the financial markets. C. Transferring purchasing power from savers to dissavers. D. Spreading risk out over many individuals.