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Lesson 4 1. If an economy produces final output worth $5 trillion, then the amount of gross income generated by that production: is $5 trillion 2. Which of the following would not be ian expenditure on a final good or service? a medical clinic's purchase of flu vaccine 3. Which of the following would be included in GDP? payment of the monthly telephone bill by Mr. Laconic 4. Consumption in the expenditures approach to calculating GDP includes: purchases of medical services at the local clinic 5. Which of the following is not considered a component of investment when calculating GDP? purchases of corporate stock 6. Which of the following is not included in GDP? interest payments on the national debt 7. Which of the following…show more content…
Which of the following would not be included in an economist's definition of investment spending? the purchase of General Motors stock by Donald Trump 26. Which of the following is not considered a component of government purchases in calculating GDP? unemployment compensation payments 27. U.S. exports are: included in U.S. GDP because they are produced domestically 28. Double counting in the value added approach to GDP refers to: counting the total value of a final output in addition to the value of the inputs used to make it 29. The ultimate goal of studying the circular flow model is to understand the flow of: resources, goods, and money through the economy 30. Suppose that the economy is in equilibrium with a trade surplus and with saving less than investment. According to the circular flow model, the government's budget: must be in surplus 31. If aggregate income equals aggregate expenditure, which of the following will not be true? Saving must equal investment. 32. Which of the following is a leakage from the circular flow? Savings 33. Which of the following is not a problem associated with GDP as a measure of social welfare? It excludes intermediate goods as a separate entry. 34. Which of the following increases GDP? Homeowners purchase lawn care services rather than maintain the lawns themselves. 35. How does net domestic product (NDP) differ from gross domestic product (GDP)? GDP includes that part of the capital stock used up
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