Author Question: Which of the following is a difference between net domestic product (NDP) and gross domestic product ... (Read 71 times)

Kthamas · **on:** Jun 30, 2018

Which of the following is a difference between net domestic product (NDP) and gross domestic product (GDP)?
a. GDP includes the cost of polluting the environment, while NDP does not.
b. GDP excludes net taxes, while NDP includes it.
c. GDP excludes that part of the capital stock used up in the production process, while NDP includes it.
d. GDP includes all government spending, while NDP excludes government spending.
e. GDP includes that part of the capital stock used up in the production process, while NDP does not.

Question 2

Which of the following is not a weakness of fiscal policy?
a. Implementation of policy is difficult.
b. Time lags in fiscal policy are long and variable.
c. Fiscal policy works only during periods of stagflation.
d. Fiscal policy often affects only current income, but many economic decisions are made on the basis of permanent income.
e. Fiscal policy might have undesirable long-term effects on short-run aggregate supply.