If Consumption Expenditures Are $500, Spending on Fixed Investment Is

question 206

Multiple Choice

If consumption expenditures are $500, spending on fixed investment is $100, imports are $40, exports are $75, the capital consumption allowance is $25, government spending is $50, and inventories have fallen by $5, then Gross Domestic Product (GDP) is

• A) $25 greater than NDP.
• B) $20 greater than NDP.
• C) $50 greater than NDP.
• D) the same as NDP.

---

Definitions:

Propositional Interpretation

The process of understanding and giving meaning to different statements or propositions.

Semantic Interpretation

The process of deducing the meanings of words, sentences, or symbols within their particular context and understanding their intended message.

Additive Empathic Response

A communication strategy where the responder not only shows understanding towards the speaker's feelings but also adds their own supportive insight or emotion to the interaction.

Semantic Interpretations

An analysis process focusing on understanding the meaning of words, phrases, and sentences in a language.