1. The expenditure approach for the calculation of GDP includes spending on: a. consumption, investment, durable goods and exports. b. consumption, gross private domestic investment, government spending for goods and services, and exports. c. consumption, gross private domestic investment, government spending for goods and services, and net exports. d. consumption, net private domestic investment, government spending for goods and services, and net exports. e. consumption, gross private domestic investment, all government spending including transfer payments, and net exports. 2. When macroeconomics refers to "full employment," what do they mean? a. Full employment occurs when the unemployment rate equals zero. b. Full employment occurs when there is only frictional unemployment, and all other types of unemployment have been eliminated. c. Full employment occurs when there is only structural unemployment, and all other types of unemployment have been eliminated. d. Full employment occurs when there is only frictional unemployment, structural, and cyclical unemployment has been eliminated. 3. If the consumer price index (CPI) in Year X was 300 and the CPI in Year Y was 325, the rate of inflation for Year Y was: a. 325 percent. b. 25 percent. c. 5 percent. d. 8 percent