"To calculate GDP, economists begin with total income earned and then subtract total expenditure by the four sectors of the economy." Is the previous sentence true or false? Explain your answer
What will be an ideal response?
The sentence is false. To calculate GDP, economists can begin with total income and then make a few adjustments but they do not subtract total expenditure. Alternatively, economists can sum total expenditure by the economy's four sectors, but this summation is GDP.
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If the Fed wished to decrease interest rates, it could
A) increase the reserve requirement or conduct an open market sale. B) increase the reserve requirement or conduct an open market purchase. C) decrease the reserve requirement or conduct an open market sale. D) decrease the reserve requirement or conduct an open market purchase.
Private goods are characterized by:
A. rivalry and nonexcludability. B. rivalry and excludability. C. nonrivalry and nonexcludability. D. nonrivalry and excludability.