If consumption was 70 percent of GDP and investment and government expenditure were both 18 percent each, then we see that
A) exports must be less than imports.
B) exports must be more than imports.
C) the error is due to rounding.
D) we must subtract depreciation from investment so that the components of GDP do not exceed 100 percent.
E) GDP can be over 100 percent because it is "gross" rather than "net."
A
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An automobile manufacturing plant is likely to have a ______________ price elasticity of supply than a bread bakery due to _________________.
A. more elastic; a more flexible production process B. more elastic; greater availability of inputs C. less elastic; a less flexible production process D. more elastic; lower availability of inputs
According to the interest rate effect, as the price level decreases, households and firms' holdings of money ____, interest rates ____, investments ____, and the quantity RGDP demanded ____
a. increases, decrease, increase, decreases b. increases, increase, increase, decreases c. decreases, decrease, increase, increases d. increases, increase, decrease, decreases
"As income rises, the demand for most goods also rises." This statement
a. is inconsistent with the law of demand b. suggests that many goods are inferior goods c. shows that the quantity demanded is inversely related to price d. suggests that most goods are normal goods e. does not apply to goods traded in competitive markets
Economic systems should only be judged on efficiency.
Answer the following statement true (T) or false (F)