If Personal Consumption Expenditures Are $6 Billion, Government Purchases Are

question 112

Multiple Choice

If personal consumption expenditures are $6 billion, government purchases are $10 billion, gross private domestic investments are $4 billion and net exports are $negative 3 billion, then GDP is:

• A) $23 billion
• B) $20 billion
• C) $17 billion
• D) $16 billion
• E) none of the above

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Definitions:

Wage Increase

An upward adjustment in the pay that employees receive for their work.

Deferred Annuity

An insurance contract designed to generate regular payments starting at a future date, often used as a retirement investment.

Quarterly Payment

Regular payments made every three months on a loan or investment.

Compounded Semi-annually

The process of adding interest to the principal sum of a loan or deposit, where the interest is added twice a year.