Author Question: GDP equals 5 trillion. If consumption equals 3.5 trillion, investment equals 1 trillion, and ... (Read 123 times)

sheilaspns · **on:** Jun 30, 2018

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.