Total spending in the economy is divided into
consumption, investment, government purchases, and exports.
consumption, investment, government expenditures, and exports.
market spending, nongovernmental organization spending, foreign spending, and government
consumption, investment, government expenditures, and net exports.
consumption, investment, government purchases, and net exports.
In a simple economy, Wanda's Weavers grows cotton and weaves it into cloth. In the current year,
Wanda's Weavers produces cloth valued at $1,000, half of which it sells directly to consumers for their
own personal use and half of which it sells to Joe's T-shirts. Joe's T-shirts produces T-shirts valued at
$1,500 for the current year. What is the value of GDP in this simple economy?
Net exports are
the sum of exports and imports.
the difference between exports and imports.
exports net of services.
imports less exports.
exports earmarked for nongovernmental use.
the purchase of final goods by business firms.
the purchase of securities by business firms.
the purchase of intermediate goods by business firms.