1. GDP measures total expenditure on the economy's goods and services.(a. Trueb. False)

2. Net export is imports minus exports. (a. Trueb. False)

3. Investment is about 70% of GDP.(a. Trueb. False)

4. U.S. GDP excludes the production of illegal goods.(a. Trueb. False)

5. The CPI probably still understates inflation by about 2% every year due to three problems of CPI.(a. Trueb. False)

6. The index can be used to measure an overall inflation rate of an economy. (a. Trueb. False)

7. The official inflation rate by the government is always underestimated and lower than the actual inflation rate. (a.Trueb.False)

8. Public saving is equal to national saving plus private saving. (a. Trueb. False)

9. Hugh government budget deficit can make an economy grow slower in the long run. (a.Trueb.False)

10. Both supply and demand for loanable funds come from saving. (a. Trueb. False)

11. When a budget deficit crowds out investment, it decreases the growth rate of GDP. (a. Trueb. False)