To calculate GDP, economists begin with total income earned and ...

[ec501234]

To calculate GDP, economists begin with total income earned and then subtract total expenditure by the four sectors of the economy. Is the previous sentence true or false? Explain your answer.
 
  What will be an ideal response?

Question 2

If the dollar to euro exchange rate moves from 1.1 to 0.9 dollars per euro, then the dollar has ________ and the euro has ________.
 
  A) appreciated; depreciated B) appreciated; appreciated
  C) depreciated; depreciated D) depreciated; appreciated

[Moriaki]

Answer to Question 1

The sentence is false. To calculate GDP, economists can begin with total income and then make a few adjustments but they do not subtract total expenditure. Alternatively, economists can sum total expenditure by the economy's four sectors, but this summation is GDP.

Answer to Question 2

A