Which of the Following Items Is Included in U

question 77

Multiple Choice

Which of the following items is included in U.S.GDP?

• A)the estimated value of production accomplished at home,such as backyard production of fruits and vegetables
• B)the value of illegally-produced goods and services
• C)the value of cars and trucks produced in foreign countries and sold in the U.S.
• D)None of the above is included in U.S.GDP.

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Definitions:

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way, typically with only natural unemployment remaining.

Marginal Propensity

Measures the portion of additional income that an individual or entity spends on consuming goods rather than saving.

Multiplier

The ratio of the change in an endogenous variable to the change in an exogenous variable it is dependent on, often used in the context of fiscal policy’s effect on the economy.

MPC

Stands for Marginal Propensity to Consume, indicating the proportion of additional income that is spent on consumption.