im having a little toruble with the following question and answer: The Commerce Department reported that retail sales increased 1.3 percent in June. Net exports were up 0.8 percent in the first quarter and inventories held by businesses rose by 0.3 percent in June. Total sales by businesses rose 0.3 percent. Source: Commerce Department, 2013 Does the statement that total sales by businesses were up 0.3 percent mean that GDP increased by 0.3 percent? The statement that total sales by businesses were up 0.3 percent means that GDP because . A. did not change by 0.3 percent; GDP measures production of all final goods and services and "total sales by businesses" includes final and intermediate goods and services B. increased by 0.3 percent; GDP is a record of the value of all production C. decreased by 0.3 percent; "total sales by businesses" are sales of intermediate goods and services D. increased by less than 0.3 percent; we need to subtract retail sales of 1.3 percent from the "total sales by businesses" to eliminate double counting E. increased by more than 0.3 percent; "total sales by businesses" includes only sales of intermediate goods and services

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 9WNG

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im having a little toruble with the following question and answer:

The Commerce Department reported that retail sales increased 1.3 percent in June. Net exports were up 0.8 percent in the first quarter and inventories held by businesses rose by 0.3 percent in June. Total sales by businesses rose 0.3 percent.

Source: Commerce Department, 2013

Does the statement that total sales by businesses were up 0.3 percent mean that GDP increased by 0.3 percent?

The statement that total sales by businesses were up 0.3 percent means that GDP ______ because ______.

did not change by 0.3 percent;

GDP measures production of all final goods and services and "total sales by businesses" includes final and intermediate goods and services

increased by 0.3 percent;

GDP is a record of the value of all production

decreased by 0.3 percent;

"total sales by businesses" are sales of intermediate goods and services

increased by less than 0.3 percent;

we need to subtract retail sales of 1.3 percent from the "total sales by businesses" to eliminate double counting

increased by more than 0.3 percent;

"total sales by businesses" includes only sales of intermediate goods and services

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