Because the sale of goods and services generates income for the sellers,
A) GDP is unaffected by such exchanges.
B) national income will usually by greater than GDP.
C) national income will essentially equal GDP.
D) national income will increase, but GDP will decrease.
E) sales taxes must be subtracted from GDP.
C
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All of the following are explanations of the post-1973 productivity slowdown except
A) problems in measuring productivity. B) changes in the legal and human environment. C) higher oil prices. D) greater competition from foreign imports.
If the MPS is 0.1 and the income tax rate is 0.33 the multiplier, k, is approximately
A) 2.5. B) 2.0. C) 10. D) 3.
If the United States' unemployment rate is 10 percent and the capacity utilization rate is 70 percent, the economy is in the midst of a ____________.
Fill in the blank(s) with the appropriate word(s).
The Big Mac index uses prices of a common item to predict long-run changes in exchange rates.
Answer the following statement true (T) or false (F)