Homework Answers
We know that Net Investment is Gross Investment minus the depreciation. Hence if Depreciation is greater than investment then Met investment will be Negative. Hence the correct answer is part b) .
From the above explanation, part a) cannot be the answer as until and unless depreciation is zero, net and gross investment can't be equal.
Part c) can't be the correct answer as Nominal and Real GDP are differentiated on the basis of prices and not on the basis of Depreciation.
Part d) can't be the answer as the economy can't be possibly expanding when depreciation is greater than gross investment.
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Read over the questions carefully. There are 30 questions and each question has a value of...
Read over the questions carefully. There are 30 questions and each question has a value of...
Read over the questions carefully. There are 30 questions and each question has a value of 3 poir Question 13 Net exports is a negative figure when: O a nation's imports of goods and services exceed its exports a nation's exports of goods and services exceed its imports the economy's stock of capital goods is declining depreciation exceeds gross private domestic investment < Previous
Read over the questions carefully. There are 30 questions and each question has a value of...
Read over the questions carefully. There are 30 questions and each question has a value of 3 points. Question 9 The difference between U.S. Gross Domestic Product and Gross National Product is: Foreign currency is counted in GDP but not in GNP Foreign investments in EU countries are counted in GDP but not GNP Foreign trade is counted in GDP but not in GNP Foreign-owned factories located in the U.S. are counted in GDP but not GNP Previous
Read over the questions carefully. There are 30 questions and each question has a value of...
Read over the questions carefully. There are 30 questions and each question has a value of 3 points. D Question 5 In the definition of GDP "final goods and services" means: Those goods no longer used to produce another product or service are counted Goods destined for final consumption in foreign countries are not counted Intermediate goods are not counted Only products certified and tested are counted as part of GDP Previous
LIOIO d over the questions carefully. There are 30 questions and each question has a value...
LIOIO d over the questions carefully. There are 30 questions and each question has a value of 3 points. Question 17 In 2009 gross investment was $1.9 trillion and depreciation was $2.6 trillion. How much was net investment? -$4.5 trillion e $0.70 trillion e $4.5 trillion -$0.70 trillion Previous
12 II over the questions carefully. There are 30 questions and each question has a value...
12 II over the questions carefully. There are 30 questions and each question has a value of 3 points. Question 6 What if Sam buys $7 worth of yarn to knit a sweater for her cat. By how much does GDP increase? $0 > $4 * Previous
12 1130I uction13 over the questions carefully. There are 30 questions and each question has a...
12 1130I uction13 over the questions carefully. There are 30 questions and each question has a value of 3 points. Question 12 Historically, in the United States and most developed countries, the largest proportion of Gross Domestic Product is accounted for by: Gross Investment Exports Govenrment Spending Consumption Previous
need help with these two questions. thanks! QUESTION 8 (PP) Inflation in recent years has been:...
need help with these two questions. thanks!
QUESTION 8 (PP) Inflation in recent years has been: o consistently under 2% consistently over 2% o consistently negative (declining prices) o consistently over 5% QUESTION 11 Suppose the base year for the GDP deflator is 2012. In an inflationary economy we would expect: o real GDP to be less than nominal GDP after 2012 real GDP to be more than nominal GDP after 2012 o real GDP to equal nominal GDP after...
iz Instructions over the questions carefully. There are 30 questions and each question has a value...
iz Instructions over the questions carefully. There are 30 questions and each question has a value of 3 points. Question 26 The unemployment rate that occurs during full employment (known as the natural rate of unemployment) is: The unemployment rate experienced by the least-skilled workers in the economy. The unemployment rate experienced by the most-skilled workers in the economy. The unemployment rate below which inflation will become a problem. The unemployment rate experienced at the depth of a depression. Previous
When an economy's production capacity is expanding, O A. DI exceeds Pl. B. net exports is...
When an economy's production capacity is expanding, O A. DI exceeds Pl. B. net exports is always a positive amount. C. nominal GDP, but not necessarily real GDP, is rising. D. gross domestic investment exceeds depreciation. QUESTION 2 National income accountants define investment to include A. the purchase of common or preferred stock. ов. any increase in business inventories. О с. the purchase of any durable good, for example, an automobile or a refrigerator. D the addition of cash to...
Question 16 In 1933 net investment was negative $5.5 billion. This meant that: The production of...
Question 16 In 1933 net investment was negative $5.5 billion. This meant that: The production of 1933's GDP used up more capital goods than were produced in that year. O Gross investment exceeded depreciation by $5.5 billion. The economy produced no capital goods at all in 1933. The economy was expanding in that year. + Previous
Read over the questions carefully. There are 30 questions and each question has a value of 3 poir Question 13 Net exports is a negative figure when: O a nation's imports of goods and services exceed its exports a nation's exports of goods and services exceed its imports the economy's stock of capital goods is declining depreciation exceeds gross private domestic investment < Previous
Read over the questions carefully. There are 30 questions and each question has a value of 3 points. Question 9 The difference between U.S. Gross Domestic Product and Gross National Product is: Foreign currency is counted in GDP but not in GNP Foreign investments in EU countries are counted in GDP but not GNP Foreign trade is counted in GDP but not in GNP Foreign-owned factories located in the U.S. are counted in GDP but not GNP Previous
Read over the questions carefully. There are 30 questions and each question has a value of 3 points. D Question 5 In the definition of GDP "final goods and services" means: Those goods no longer used to produce another product or service are counted Goods destined for final consumption in foreign countries are not counted Intermediate goods are not counted Only products certified and tested are counted as part of GDP Previous
LIOIO d over the questions carefully. There are 30 questions and each question has a value of 3 points. Question 17 In 2009 gross investment was $1.9 trillion and depreciation was $2.6 trillion. How much was net investment? -$4.5 trillion e $0.70 trillion e $4.5 trillion -$0.70 trillion Previous
12 II over the questions carefully. There are 30 questions and each question has a value of 3 points. Question 6 What if Sam buys $7 worth of yarn to knit a sweater for her cat. By how much does GDP increase? $0 > $4 * Previous
12 1130I uction13 over the questions carefully. There are 30 questions and each question has a value of 3 points. Question 12 Historically, in the United States and most developed countries, the largest proportion of Gross Domestic Product is accounted for by: Gross Investment Exports Govenrment Spending Consumption Previous
need help with these two questions. thanks!
QUESTION 8 (PP) Inflation in recent years has been: o consistently under 2% consistently over 2% o consistently negative (declining prices) o consistently over 5% QUESTION 11 Suppose the base year for the GDP deflator is 2012. In an inflationary economy we would expect: o real GDP to be less than nominal GDP after 2012 real GDP to be more than nominal GDP after 2012 o real GDP to equal nominal GDP after...
iz Instructions over the questions carefully. There are 30 questions and each question has a value of 3 points. Question 26 The unemployment rate that occurs during full employment (known as the natural rate of unemployment) is: The unemployment rate experienced by the least-skilled workers in the economy. The unemployment rate experienced by the most-skilled workers in the economy. The unemployment rate below which inflation will become a problem. The unemployment rate experienced at the depth of a depression. Previous
When an economy's production capacity is expanding, O A. DI exceeds Pl. B. net exports is always a positive amount. C. nominal GDP, but not necessarily real GDP, is rising. D. gross domestic investment exceeds depreciation. QUESTION 2 National income accountants define investment to include A. the purchase of common or preferred stock. ов. any increase in business inventories. О с. the purchase of any durable good, for example, an automobile or a refrigerator. D the addition of cash to...
Question 16 In 1933 net investment was negative $5.5 billion. This meant that: The production of 1933's GDP used up more capital goods than were produced in that year. O Gross investment exceeded depreciation by $5.5 billion. The economy produced no capital goods at all in 1933. The economy was expanding in that year. + Previous
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