GDP equals 5 trillion. If consumption equals 3.5 trillion, ...

[sheilaspns]

GDP equals 5 trillion. If consumption equals 3.5 trillion, investment equals 1 trillion, and government spending equals 1.5 trillion, then:
 a. exports exceed imports by 1 trillion.
  b. imports exceed exports by 1 trillion.
  c. net exports equal zero.
 d. exports exceed imports by 1.5 trillion.

Question 2

A change in consumption caused by a change in disposable income is shown by:
 a. a movement along the consumption function.
  b. a rightward shift of the consumption function.
  c. a change in the slope of the consumption function.
  d. a leftward shift of the consumption function.
  e. the point where the consumption function touches the 45 degree line.

[zacnyjessica]

Answer to Question 1

b

Answer to Question 2

a

[sheilaspns]

TYSM

[laurnthompson]

Excellent