National income (NI) is calculated by adjusting GDP for:
a. depreciation.
b. investment and net exports.
c. Social Security insurance contributions and transfer payments.
d. corporate and personal income taxes.
Question 2
Suppose the price level falls. The result is that the:
a. aggregate supply curve would shift to the right.
b. aggregate supply curve would shift to the left.
c. general price level would rise causing a movement up the aggregate demand curve.
d. aggregate demand curve would slope downward because of the real balances effect.