Question 12 Not yet answered Marked out of 1 Not flaggedFlag

Question 12 Not yet answered Marked out of 1 Not flaggedFlag question Question text In the immediate future, more household saving, more net taxes, and more imports Select one: a. cause GDP to rise. b. cause GDP to fall. c. have no immediate effect upon GDP.

Question 13 Not yet answered Marked out of 1 Not flaggedFlag question Question text Use the following information to find the value added of the carpenter who made a table: Profession: Economic activity: Money received from sale: Lumberjack Cut down a tree $25 Sawmill owner Turn tree into wood planks $75 Carpenter Turns lumber into table $150 Furniture store owner Sells tables to consumers $250 Select one: a. $25 b. $50 c. $75 d. $100 Question

14 Not yet answered Marked out of 1 Not flaggedFlag question Question text When we add Consumption + Investment + Government Spending + Exports – Imports for an entire year for a single country, we have calculated Select one: a. Productivity b. Household income c. GDP d. Wealth e. Balance of Trade

Solution

(12) (b)

Y = C(Y - T) + I + G + X - M

As T increases, consumption falls and so savings increase (Y falls).

As M increases, Y decreases.

So, GDP falls.

(13) (d)

Value added = $(250 - 150) = $100

(14) (c)

Y (GDP) = C + I + G + X - M