Multiple Choice (2 points each)
Identify the choice that best completes the statement or answers the question.
____ 16. Government purchases, under the expenditure approach to GDP accounting, do not include:
a.
state government purchases of plumbing services.
b.
Social Security benefit payments to retirees.
c.
the salaries of military officers.
d.
federal government purchases of computers.
____ 17. GDP equals $8 trillion. If consumption equals $5.5 trillion, investment equals $500 billion, and government spending equals $1.5 trillion, then:
a.
exports exceed imports by $500 billion.
b.
imports exceed exports by $500 billion.
c.
net exports equal zero.
d.
exports exceed imports by $1 trillion.
e.
imports exceed exports by $1 trillion.
____ 18. If some non-price level determinant causes total spending to increase, then the effect on aggregate demand will be a:
a.
movement upward along the curve.
b.
movement downward along the curve.
c.
shift to the left.
d.
shift to the right.
____ 19. An increase in the U.S. price level will:
a.
increase U.S. exports.
b.
increase U.S. imports.
c.
increase RGDP demanded in the United States.
d.
both a. and c.
e.
both b. and c.
Multiple Choice (2 points each)
Identify the choice that best completes the statement or answers the question.
____ 16. Government purchases, under the expenditure approach to GDP accounting, do not include:
a. |
state government purchases of plumbing services. |
b. |
Social Security benefit payments to retirees. |
c. |
the salaries of military officers. |
d. |
federal government purchases of computers. |
____ 17. GDP equals $8 trillion. If consumption equals $5.5 trillion, investment equals $500 billion, and government spending equals $1.5 trillion, then:
a. |
exports exceed imports by $500 billion. |
b. |
imports exceed exports by $500 billion. |
c. |
net exports equal zero. |
d. |
exports exceed imports by $1 trillion. |
e. |
imports exceed exports by $1 trillion. |
____ 18. If some non-price level determinant causes total spending to increase, then the effect on aggregate demand will be a:
a. |
movement upward along the curve. |
b. |
movement downward along the curve. |
c. |
shift to the left. |
d. |
shift to the right. |
____ 19. An increase in the U.S. price level will:
a. |
increase U.S. exports. |
b. |
increase U.S. imports. |
c. |
increase RGDP demanded in the United States. |
d. |
both a. and c. |
e. |
both b. and c. |