Q1. If consumption was 60 percent of GDP, investment was 15 percent of GDP, and government expenditure was 15 percent, then we see that: a)There must be no exports and imports. b)Exports must be equal to imports. c)Exports must be less than imports. d)Exports must be more than imports. Q2. Nominal GDP grew by 10% and real GDP grew by 8%, then we see that a)Inflation measured by consumer price index was negative. b)Inflation measured by GDP deflator was positive. c)Inflation measured by GDP deflator was negative. d) Inflation measured by consumer price index was positive. Q3. Country "X" government borrows heavily from foreign banks and pays large amount of interest on her debt. Which is an appropriate description of Country X’s national economic accounting? a)GDP is lower than GNI. b)GDP is higher than GNI c) Net factor income from abroad is positive. d) Country X is running a trade deficit. Q4. A country's trend growth rate is most likely to increase when a) the country's working age population is decreasing. b) the country's central bank lowers policy interest rates aggressively. c) the country actively imports new technologies from overseas through foreign direct investment. d) the country's government increases subsidy targeting state-owned enterprises.
Please explain all and explain the right and wrong answers also
Q1. If consumption was 60 percent of
a)There must be no exports and imports.
b)Exports must be equal to imports.
c)Exports must be less than imports.
d)Exports must be more than imports.
Q2. Nominal GDP grew by 10% and real GDP grew by 8%, then we see that
a)Inflation measured by
b)Inflation measured by GDP deflator was positive.
c)Inflation measured by GDP deflator was negative.
d) Inflation measured by consumer price index was positive.
Q3. Country "X" government borrows heavily from foreign banks and pays large amount of interest on her debt. Which is an appropriate description of Country X’s national economic accounting?
a)GDP is lower than GNI.
b)GDP is higher than GNI
c) Net factor income from abroad is positive.
d) Country X is running a
Q4. A country's trend growth rate is most likely to increase when
a) the country's working age population is decreasing.
b) the country's central bank lowers policy interest rates aggressively.
c) the country actively imports new technologies from overseas through foreign direct investment.
d) the country's government increases subsidy targeting state-owned enterprises.
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