1. For a hypothetical economy in a given year, GDP equaled $1,190, consumption equaled $782, government spending equaled $187, goods exported equaled $98, and goods imported equaled $157. What was investment equal to?

2. In national income accounting, C + I + G + X always equals

GNP Data

(Includes net factor income from abroad)

Consumption Spending $2,420

Net Investment $470

Government Spending $350

Capital Consumption Allowance $55

Exports $740 Imports $600

3. Refer to Figure GNP Data. Net exports equals

4. Refer to Figure GNP Data. Gross investment equals

5. For the economy described in GNP Data, GNP equals

6. Looking at the 2008 U.S. GDP statistics, the fact that net exports were negative means that

7. Improvements in technology

a. cause the investment function to shift downward.

b. reduce profit expectations.

c. increase autonomous investment spending.

d. cause lower rates of economic growth.

e. are irrelevant for a nation's industrial progress.

Domestic Income Exports Net Exports

$ 0 $120 billion $80 billion

$ 500 billion $145 billion $75 billion

$1,000 billion $170 billion $70 billion

$1,500 billion $175 billion $45 billion

$2,000 billion $210 billion $50 billion

8. Refer to Figure above. At a domestic income level of $1,500 billion, imports equal.

9. Refer to Figure above. The amount of government spending is indicated by the distance between

10. What are the major sectors that make up the U.S. economy?

a. Businesses and households

b. Government, households, and the international sector

c. Households, governments, and businesses

d. Consumers, producers, and world trade

e. The international sector, households, businesses, and government