The value of U.S. imports is ________.
A. added to exports when calculating GDP, because imports reflect spending by Americans
B. subtracted from exports when calculating GDP, because imports do not constitute production in the United States
C. subtracted from exports when calculating GDP, because imports do not constitute spending by Americans
D. added when calculating GDP, because imports do not constitute production in the United States
Answer: B
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
A profit-maximizing monopolist will always operate where demand is unit elastic
a. True b. False
If consumer purchases of a good are highly sensitive to the price of the good, this is illustrated by a
What will be an ideal response?
Quantity supplied is determined by how much producers are willing and able to produce.
Answer the following statement true (T) or false (F)