When measuring GDP,
A) the government sector is not included because it is the public sector not the private sector.
B) the government sector is counted, and the value of the government sector in GDP is equal to its tax revenue.
C) only the federal government's expenditure on goods and services are included.
D) the expenditure on goods and services by all levels of government are included.
E) the government sector is not counted because it does not produce goods and services.
D
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When we measure the impact of exchange rate changes on a nation's trade balance, the bilateral exchange rates explain only part of the change. To assess the overall change, we need to calculate:
a. the home multilateral exchange rate, or real effective exchange rate. b. a nation's income versus income changes in the rest of the world. c. a nation's marginal propensity to consume imports. d. the movement over time of the trade balance along with long-run expectations of the exchange rate.
Suppose than an economy has output Y = A , that Y equals $42 trillion, capital K is $64 trillion, and labor L is 125 million workers. Given this information, what is the closest approximation of total factor productivity A?
A) less than 0.01 B) around 0.25 C) roughly 0.33 D) close to 0.4 E) exactly 144