If Consumption Was 70 Percent of GDP and Investment and Government

question 18

Multiple Choice

If consumption was 70 percent of GDP and investment and government expenditure were both 18 percent each, then we see that

• A)we must subtract depreciation from investment so that the components of GDP do not exceed 100 percent.
• B)exports must be more than imports.
• C)GDP can be over 100 percent because it is "gross" rather than "net."
• D)the error is due to rounding.
• E)exports must be less than imports.

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Definitions:

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Synthesize

To combine various elements or ideas into a coherent and unified whole, often generating new insight or understanding.

Perceptual Selection

The psychological process by which individuals screen and select various stimuli that vie for their attention, filtering out some data while allowing other data to enter perception.

Contrast

The state of being strikingly different from something else in juxtaposition or close association.