Assuming that C = $4,500, I = $1,000, G = $1,200, Exports = $450, Imports = $550, Depreciation = $600, and Indirect Business Taxes = $500 (all in billions of dollars), GDP equals:
A) $5,500 billion.
B) $6,000 billion.
C) $6,400 billion.
D) $6,600 billion.
D
You might also like to view...
What effect does an increase in the MPC have on the slope of the AE curve?
What will be an ideal response?
The steps in the transmission of monetary policy are
A) Congress increases government expenditures on goods and services, leading to an increase in aggregate demand. B) Congress increases the money supply, which lowers the interest rate, and leads to an increase in aggregate demand. C) the Federal Reserve increases government expenditures on goods and services, leading to an increase in aggregate demand. D) the Federal Reserve lowers the federal funds rate, which lowers the real interest rate and leads to an increase in aggregate demand. E) Congress increases the budget deficit, which increases the money supply, which increases aggregate supply.
Normative analysis offers decision makers the most valuable information when choosing among alternatives
Indicate whether the statement is true or false
The GDP deflator:
A. measures price changes for everything produced in the country. B. may include goods produced abroad. C. is computed using the quantities that are consumed in the economy each year. D. is the same as PPI.