Author Question: Doctor Green grows cucumbers for home consumption. That activity is: a. excluded from GDP to avoid ... (Read 69 times)

s.tung · **on:** Jun 30, 2018

Doctor Green grows cucumbers for home consumption. That activity is:
a. excluded from GDP to avoid double counting.
b. excluded from GDP because an intermediate good is involved.
c. excluded from GDP because no market transaction occurs.
d. included in GDP because it reflects production.

Question 2

Suppose that the U.S. trade balance is positive. Hence, when the net export function is added to C+I+G, the slope of the U.S. aggregate expenditures function will become steeper.
a. True
b. False
Indicate whether the statement is true or false