Using the income approach, indirect business taxes have to be added to get gross domestic product because the:
a. selling price of a product includes these taxes, which are income to the governmentrepresent ing the public interest of households.
b. selling price of a product includes these taxes, which are resource payments.
c. selling price of a product excludes these taxes and therefore they have to be added.
d. selling price includes these taxes which are actually not income to any sector of the economy.
Question 2
The aggregate demand curve:
a. shows the level of real GDP purchased in the economy at different possible price levels during a period of time.
b. shows the level of real GDP produced in the economy at different possible price levels during a period of time.
c. shifts to the left whenever there is an increase in aggregate expenditures.
d. slopes upward.
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