Expansion remains slow
The Commerce Department reported that retail sales increased 1.3 percent in June. Net exports were up 0.8 percent in the first quarter and inventories held by businesses rose by 0.3 percent in June. Total sales by businesses rose 0.3 percent.
What is the effect of the ris...
ECON 203 | Chapter 14 || A+ Verified Solutions.
Expansion remains slow
The Commerce Department reported that retail sales increased 1.3 percent in June. Net exports
were up 0.8 percent in the first quarter and inventories held by businesses rose by 0.3 percent in
June. Total sales by businesses rose 0.3 percent.
What is the effect of the rise in net exports on GDP?
The rise in net exports _______.
A.
has no effect on GDP
B.
increases GDP
C.
increases or decreases GDP depending on whether it is composed of an increase in exports or a
decrease in imports
D.
decreases GDP
E.
increases GDP only if exports increase. A decrease in imports has no effect on GDP correct
answers increases GDP
Classify each of the following items as a final good or an intermediate good, and classify the
expenditure on each final good as consumption expenditure or investment:
Item 1. New concrete mixers bought by Chicago Concrete Inc
Item 2. Cardboard boxes bought by Amazon.com
Item 3. A textbook bought by a student
Item 4. A new apartment building
Item 1 is _______ and item 2 is _______.
A.
an intermediate good;
an intermediate good
B.
a final good that is investment;
a final good that is consumption expenditure
C.
an intermediate good;
a final good that is consumption expenditure
D.
a final good that is investment;
an intermediate good correct answers a final good that is investment; an intermediate good
Item 3 is _______ and item 4 is _______.
, A.
a final good that is investment;
a final good that is investment
B.
a final good that is investment;
an intermediate good
Your answer is not correct.
C.
a final good that is consumption expenditure;
an intermediate good
D.
a final good that is consumption expenditure;
a final good that is investment correct answers a final good that is consumption expenditure; a
final good that is investment
What is U.S. gross domestic product?
U.S. gross domestic product is the market value of all the _______ produced _______ in a given
time period.
A.
final goods and services; within the United States
B.
final goods and services; by Americans anywhere in the world
C.
goods; within the United States
D.
goods; by American firms located anywhere in the world correct answers final goods and
services; within the United States
What is a good that is used as a component of a final good? Is the value of intermediate goods
included in the measure of GDP?
_______ good is used as a component of a final good. We _______ add the value of intermediate
goods produced to the value of final goods to measure GDP.
A.
An intermediate; do
B.
An intermediate; do not
C.
A component; do not
D.
A component; do correct answers An intermediate; do not
How is total expenditure in the United States calculated?
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