Question 49
Marked out of 1.0
Flag question
If total spending rises from one year to the next, then
Select one:
? A. prices at which goods and services are sold must be higher.
? B. either the economy must be producing a larger output of goods and services, or the prices at which goods and services are sold must be higher, or both.
? C. the economy must be producing a larger output of goods and services because a change in prices does not effect total spending, only a change in output affects total spending.
? D. net exports must be falling.
? E. net exports must be rising.
Question 50
Marked out of 1.0
Flag question
Which of the following statements is (are) correct?
(x) Goods and services produced and sold illegally are included in GDP.
(y) The production of one luxury car adds more to GDP than one economy car even though the auto industry makes many more economy cars than luxury cars.
(z) In August, 2015 a farmer sells recently harvested wheat to a baker for $2 and the baker uses the wheat to make bread, which is sold for $3. The total contribution to nominal GDP, in 2015, of these
transactions is $3.
Select one:
? A. (x), (y), and (z)
? B. (x) and (y) only
? C. (x) and (z) only
? D. (y) and (z) only
? E. (y) only
