Nus espots of gseds and services is eged so the value of A) esports phus the val
ID: 1147694 • Letter: N
Question
Nus espots of gseds and services is eged so the value of A) esports phus the value of impon sts phus the value of n minus the valoo of imports tO domestic consasption mims ie value of esports 27) Which of the follonwing espenditue con A) Consumption espenditure itare components of GDP can be seyative or pusitive tt) Ievestmen ) Gov D) Net exports of goods and services 1) None of the above because expenditure can never be negative. eninent expenditure on goods and services 28) The purchase of a new Bieing fighter jet by Israel is classified in the US GDP accounts as A) export expenditure 1B) consumption expenditure. C) investment expenditure. D) government expenditure. E) import expenditure. 29) Last year in Candamica, consumption expenditure was $20 billion, interest, rent, and profit were $2.5 billion, govemment expenditure on goods and services was $7 billion, net exports ot goods and services was $5 billion, and investment was $2 billion. Hence total expenditure was A) S24.5 billion. B) $34.5 billion. C) 536.5 billion. D) $34 billion. E) undetermined without information about imports. 30) Everything else the same, if government expenditure increases by $400 billion and imports increase by $400 billion, then GDP A) increases by $400 billion. B) increases by $200 billion. C) decreases by $400 billion. D) does not change. E) decreases by $200 billion.Explanation / Answer
26)
Net Export = Export – Import
Hence, right option is (D)
27)
Net export either can be positive or negative.
Thus, right answer is (D)
28)
Selling of Boeing to Israel is considered as export as US income is accrued to US.
Right answer is (A)
29)
Total Expenditure = consumption + Investment + government expenditure + Net export
= 20 +7+2+5
=$34 Billion
Right answer is (D)
30)
Government expenditure moves out of country. Thus, there shall not be any change in GDP
Right answer is (D)
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