Potential GDP Aggregate expenditure AE, E, 45° Y. Real GDP (Y) On the 45 degrees line: GDP is equal to aggregate expenditure O B. GDP is greater than aggregate expenditure OC. Aggregate expenditure is constant OD. GDP is constant Aggregate Expenditure

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QUESTION 16 Which items are added together to get Gross Domestic Product? OA. Consumption, government spending, net exports, and treasury bonds O B. Consumption, Interest payments, government spending, and net export OC Consumption, investment, government spending, and net exports O D.Consumption, aggregate demand, aggregate supply, and net exports QUESTION 17 Which of the following would NOT be included in GDP? OA. a haircut at Styles of tomorrow OB. Buying 1.000 s of Amazon Stock OC Buying gasoline at Exxon Mobil O D. All of the above woud be included QUESTION 18 A policeman's salary would fall under which component of GDP? OA consumer spending OB. private investment OC. government purchase O D-net exports QUESTION 19 In the market for paperback books, more people are reading books on kindles and ipads. Which of the following is likely to occur O A. The demand curve for paper back books will shift to the right O B. Nane af the above O The supply curve of paperback books will shift to…

Induced Consumption is:     A. that part of consumption that varies with the level of GDP   B. that part of consumption that varies with nondurable goods   C. that part of consumption that varies with durable goods   D. that part of consumption that varies with the level of disposable income

am. 20.

GDP excludes O the production of nondurable goods. O the market value of unpaid work in the home. O the production of services. O positive changes in inventories.

Question 40 In the economy of Ukzten in 2010, consumption was $1000, exports were $100, government purchases were $450, imports were $150, and investment was $350. What was Ukzten's GDP in 2010? A. $1750 B. $1900 C. $1850 OD. $2050 0.

A. Net export spending will have a negative value when the country exports more goods than it imports from other countries. Group of answer choices True False B. Which of the following components of GDP includes your tuition payments? Group of answer choices consumption of nondurable goods investment consumption of durable goods consumption of services C. In the economy, income earned when producing new final goods and services must equal expenditure on the new final goods and services. Group of answer choices True False

Based on Aggregate Expenditure (AE) model if aggregate expenditure is less than GDP, what will happen (increase or decrease) to:   inventories GDP Employment

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