If purchases of eduction and medical care were counted as investment rather than consumption, GDP would
A) not change, because there is no change in total expenditures
B) increase, because investment is included in GDP but consumption is not
C) increase, because consumption is included in GDP, but investment is not
D) decrease, because investment is weighed more heavily than consumption in GDP
E) decrease, because consumption is weighed more heavily in calculating GDP
Ans: A) not change, because there is no change in total expenditures
You might also like to view...
A policy of "beggar-thy-neighbor" is a policy that
A) often benefits the home country in the long run. B) often benefits the foreign country in the long run. C) often benefits foreign country in the short run. D) does not often benefits any country in the long run. E) benefits the home country's neighbors in the long run.
The largest group of saver-lenders in the financial system is
A) businesses. B) government. C) households. D) financial intermediaries.
In the four decades from 1860 to 1900, the U.S. population nearly tripled. Real Gross Domestic Product (GDP)
(a) fell by more than the amount by which the population increased. (b) fell by the same amount by which the population increased. (c) rose at about the same rate as the population increase. (d) increased by even more than the population increase.
On the graph above, what area represents consumer surplus when the price is $10?
A. A B. B C. C D. A and B E. B and C