Multiple Choice
Transfer payments are
A) excluded when calculating GDP because they only reflect inflation.
B) excluded when calculating GDP because they do not reflect current production.
C) included when calculating GDP because they are a category of investment spending.
D) included when calculating GDP because they increase the spending of recipients.
Correct Answer:
Verified
Correct Answer:
Verified
Q13: GDP tends to underestimate the productive activity
Q15: Disposable income (DI) includes transfer payments like
Q16: Suppose that inventories were $80 billion in
Q17: Suppose nominal GDP was $360 billion in
Q19: Arthur sells $100 worth of cotton to
Q22: The largest component of total expenditures in
Q23: If prices increased, we need to adjust
Q158: Assume that the size of the underground
Q229: The gross domestic product (GDP) concept accounts
Q237: When gross investment is positive, net investment<br>A)