In a small open economy, Sd = 200 + 500rw and Id = 300 - 200rw. If rw = 0.1, then net exports =

How are intermediate goods treated in the calculation of GDP?

A) Their value is counted separately, and their value is also included as part of the value of the final good for which they are an input. B) Their value is counted separately, but is not included as part of the value of the final good for which they are an input. C) They are included only if they are imported. D) Their value is not counted separately, but included as part of the value of the final good for which they are an input.

The budget line and the indifference curve are geometric devices used to provide a closer look at consumer choice

a. True b. False Indicate whether the statement is true or false