If Personal Consumption Expenditures Are $1 Billion,government Purchases Are $2

question 132

Multiple Choice

If personal consumption expenditures are $1 billion,government purchases are $2 billion,gross private domestic investments are $4 billion and net exports are $5 billion,then GDP is:

• A)$11 billion
• B)$8 billion
• C)$7 billion
• D)$2 billion
• E)none of the above

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Definitions:

Free Market

An economic system in which prices are determined by unrestricted competition between privately owned businesses.

Life Expectancy

The average period that an individual is expected to live, based on statistical averages of age, gender, and other demographic factors.

Leisure Time

Free time not taken up by work, chores, or other obligatory activities, allowing individuals to engage in activities of their choice.

State-Supported Company

A business that receives financial aid, subsidies, or other forms of support from the government.