e statement that total sales by businesses rose by 1.5 percent means that GDP. because O A. increased by more than 1.5 percent; "total sales by businesses" includes only sales of intermediate goods and services B. decreased by 1.5 percent; "total sales by businesses" are sales of intermediate goods and services o C. increased by 1.5 percent; GDP is a record of the value of all production D. increased by less than 1.5 percent; we need to subtract retail sales of 0.2 percent from the "total sales by businesses" to eliminate double counting E. did not change by 1.5 percent; GDP measures production of all final goods and services and "total sales by businesses" includes final and intermediate goods and services
e statement that total sales by businesses rose by 1.5 percent means that GDP. because O A. increased by more than 1.5 percent; "total sales by businesses" includes only sales of intermediate goods and services B. decreased by 1.5 percent; "total sales by businesses" are sales of intermediate goods and services o C. increased by 1.5 percent; GDP is a record of the value of all production D. increased by less than 1.5 percent; we need to subtract retail sales of 0.2 percent from the "total sales by businesses" to eliminate double counting E. did not change by 1.5 percent; GDP measures production of all final goods and services and "total sales by businesses" includes final and intermediate goods and services
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Monthly report
The Commerce Department reported that in May, 2019, retail sales rose by 0.2 percent, net exports decreased, inventories held by businesses rose by 0.3 percent, and total sales by businesses rose by 1.5 percent.
Source: Commerce Department, July 2019
Does the statement that total sales by businesses rose by 1.5 percent mean that GDP increased by 1.5 percent?
--...
The statement that total sales by businesses rose by 1.5 percent means that GDP
because
O A. increased by more than 1.5 percent3;
"total sales by businesses" includes only sales of intermediate goods and services
O B. decreased by 1.5 percent;
"total sales by businesses" are sales of intermediate goods and services
O C. increased by 1.5 percent;
GDP is a record of the value of all production
O D. increased by less than 1.5 percent;
we need to subtract retail sales of 0.2 percent from the "total sales by businesses" to eliminate double counting
O E. did not change by 1.5 percent;
GDP measures production of all final goods and services and "total sales by businesses" includes final and intermediate goods and services
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education