Transfer payments______________
A. are payments that flow from government to households.
B. are not made in exchange for currently produced goods or services.
C. alter household income, but they do not reflect the economy’s production.
D. All of the above are correct.
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Net exports equal______________
A. exports plus imports.
B. exports minus imports.
C. imports minus exports.
D. GDP minus imports.
If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, which would rise?______________
A. both real GDP and nominal GDP
B. real GDP but not nominal GDP
C. nominal GDP but not real GDP
D. neither nominal GDP nor real GDP
Changes in nominal GDP reflect______________
A. only changes in prices.
B. only changes in the amounts being produced.
C. both changes in prices and changes in the amounts being produced.
D. neither changes in prices nor changes in the amounts being produced.
GDP does not reflect______________
A. the value of leisure.
B. the value of goods and services produced at home.
C. the quality of the environment.
D. All of the above are correct.
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