7 Private spending on tools plant and equipment that are use

7 Private spending on tools, plant, and equipment that are used to produce future output is called:

Select one:

a. consumption.

b. investment.

c. government spending.

d. net exports.

Question 8

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8 Increases in real GDP are considered the best measure of increases in living standards, because they measure:

Select one:

a. only increases in the cost of living.

b. only increases in production.

c. both increases in prices and increases in production.

d. only increases in prices.

Question 9

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9 The GDP growth rate is used to measure the changes in employment over time.

Select one:

True

False

Question 10

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10 Which of the following will cause the demand for product (A) to decrease?

Select one:

a. an increase in money income if (A) is a normal good

b. an increase in the price of complementary product (C)

c. population growth that causes an expansion in the number of persons consuming (A)

d. an increase in the price of a substitute good (S)

Question 11

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11 Which of the following correctly give the conditions needed for market equilibrium?

Select one:

a. The quantity supplied has fallen to zero

b. All firms have made a profit

c. Everyone that demanded the good has received one

d. The quantity supplied = quantity demanded

Question 12

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12 Suppose nominal GDP is estimated to be $5 trillion, and the GDP deflator is 150. Given these numbers what is real GDP?

Select one:

a. $ 4.0 trillion

b. $7.5 trillion

c. $3.33 trillion

d. $2.75 trillion

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Solution

7.

Answer- option (b)

Because those equipment,plant, tools will produce more income in future or become worth more.

8. Answer- option (b)

Living standards depends on productivity, which is measured by GDP. So, increase in real GDP can be a good measure of increase in living standards because increase in production can be measured by this.