Chapter 6 true false

Principles of Macroeconomics: A Study Guide

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Chapter 6: Measuring National Output and National Income True or False
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1. GDP includes goods both when they are purchased as inputs and when they are sold as final products. TRUE FALSE 2. GDP excludes transactions in which money or goods change hands but in which no new goods and services are produced. TRUE FALSE 3. U.S. GDP excludes the income of foreigners working in the United States. TRUE FALSE
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4. U.S. GNP is the market value of all final goods and services produced, here and abroad, during a given period, by U.S.-owned factors of production. TRUE FALSE 5. Aggregate expenditure and aggregate income are two sides of the same coin.
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Unformatted text preview: TRUE FALSE 6. Residential investment is the largest component of domestic household consumption. TRUE FALSE 7. When the value of exports exceeds the value of imports, the country faces a trade deficit. TRUE FALSE 8. Net investment equals gross investment plus depreciation. TRUE FALSE 9. Households use disposable income to consume, save, and pay taxes. TRUE FALSE 10. When the price level increases, nominal GDP increases even if no new goods and services are produced. TRUE FALSE...
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This homework help was uploaded on 02/01/2008 for the course EBGN 312 taught by Professor Sosa during the Fall '02 term at Mines.

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Chapter 6 true false - TRUE FALSE 6. Residential investment...

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