If GDP is $10 trillion, Personal Consumption Expenditure is $6.5 trillion, Gross Private Investment is $2.0 trillion, and Government Consumption and Investment Expenditures together are $2.0 trillion,
A. Indirect Business Taxes are $0.5 trillion.
B. Depreciation is $0.5 trillion.
C. Net Exports are -$0.5 trillion.
D. Net Exports are $0.5 trillion.
Answer: C
You might also like to view...
Intermediate goods are not counted as part of gross domestic product
Indicate whether the statement is true or false
Suppose a country's net exports equal $1.9 billion. Which of the following will happen if the volume of imports increases by $2 billion without any change in the volume of exports?
A) The country's net exports will be equal to $0.1 billion. B) The country's net exports will become negative. C) The country's net exports will be equal to $3.9 billion. D) The country's net exports will be zero.
Consider the market for cable television, a natural monopoly, shown in the figure above. If the regulator imposes an average cost pricing rule, the firm provides service to
A) 3.5 million households. B) 6 million households. C) 10.5 million households. D) 12.5 million households.
The rational expectations hypothesis is based on the assumption that
A. most firms operate in a less than competitive environment. B. individuals combine effects of past policy actions with their own judgment about future policy effects and changes when forming their expectations. C. individuals adapt in response to past policy actions and changes without looking ahead when forming their expectations. D. firms pay above equilibrium wages to their employees.