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One would expect current consumption expenditures to be most closely related to: Gross Domestic Product b. Net National Product c. National Income...

7. One would expect current consumption expenditures to be most closely related to:                                    

a. Gross Domestic Product


b. Net National Product


c. National Income


d. Personal Income


e. Disposable Income



Question 8. 8. When a country's exports exceeds its imports:
       a. a budget deficit exists
       b. a budget surplus exists
       c. a trade deficit exists
       d. a trade surplus exists
      e.  none of the above is necessarily the case


Question 9. 9. GDP includes:
       a.intermediate transactions.
       b. transfer payments (governmental and non-governmental)
       c. purchases and sales of securities.
       d. final goods.
       e. none of the above


Question 10. 10. According to standard Keynesian economic theory, an increase in government spending has a greater impact in terms of increasing the level of aggregate income--that is, is more "stimulative"--if it is:(Points : 3)
       a. financed by raising taxes to pay for it
       b. financed by selling Treasury debt on the open market
       c. financed by creating new money--that is, by "monetizing the debt"
       d. Keynesian theory holds that increased government spending reduces the level of aggregate income--it is NOT stimulative


Question 11.11. Which of the following is true of the CPI?

       a. The base period is set at 0
       b. The "core" CPI must increase at a slower rate than the "raw" CPI because it excludes fast rising components
       c. The CPI-U, the most commonly used and reported CPI measure, is used to index most U.S. government "entitlement" payments
      d. The CPI is a considered by most economists as a very reliable cost-of-living index
       e. None of the above statements is true of the CPI
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Answers: 7. e. Disposable Income 8. d. a trade surplus exists 9. d. final goods. 10.c.... View the full answer

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