Look at the following data: durable goods = $200 billion; nondurable goods = $350 billion; services = $600 billion; fixed investment + inventory investment = $200 billion; government purchases = $400 billion; exports = $30 billion; imports = $79 billion. GDP is equal to
A) $1,701 billion.
B) $1,201 billion.
C) $1,859 billion.
D) $1,010 billion.
E) There is not enough information to answer the question.
A
You might also like to view...
The human capital model assumes that
a. education is a productive investment that raises total output. b. education does not change potential productivity, but it does save resources by reducing sorting costs for employers. c. the educational system is a very expensive process to legitimize the intergenerational transmission of privileged status. d. such factors as the love of learning should be included in the analysis.
Which of the following will not cause the demand for product K to change?
A. A change in the price of close-substitute product J. B. An increase in incomes of buyers of product K. C. A change in the price of product K. D. A change in consumer tastes for product K.
A system of private property rights
A. encourages investment but discourages entrepreneurial activity, so the effect on economic growth is uncertain. B. reduces the efficiency of government, which reduces the growth rate of the economy over time. C. discourages economic growth by discouraging the development of new ideas and ways of doing things. D. encourages economic growth by creating incentives to invest in capital and to be innovative.
A decrease in taxes
a. increases GDP as much as a decrease in government purchases b. increases GDP less than an equal increase in government purchases c. decreases GDP more than an equal decrease in government purchases d. changes GDP but in an unpredictable way because some people consume more than others and others save more than some e. increases consumption but has no effect on GDP