5. A utility company builds a new nuclear reactor that is counted as part of the current year's GDP The nuclear reactor would be counted as part of a. income spending. b. investment spending. c. government spending. d. consumption spending. 6. Which of the following is a final good produced by a bakery? a. cake b. flour C. sugar d. eggs 7. Which of the following is an example of an automatic stabilizer? a. Medicare b. transportation funding c. Social Security d. unemployment insurance 8. If the growth of real GDP is sluggish-that is, below trend-in order to stimulate the economy, policymakers may choose to: a. increase taxes. b. increase the money supply. c. decrease the money supply. d. decrease government spending. 9. To maintain the current standard of living an economy must grow: a. at its trend rate. b. at least 10 percent per year c. at least as fast as its population is d. at a slower rate than its population is 10. Per capita GDP: a. measures the standard of living in a b. is the GDP of a country divided by that c. both a and b country's population. 11. What are the components of GDP Government Spending (G) Exports (E) Spending (G) Exports (E) Spending (G) Net Exports (x-m) T) Government Spending (G) Net Exports (x-m) d. none of the above a. Consumption (C) Inflation() b. Consumption (C) Income () Government C. Consumption (C) Income Government d. Consumption (C) Investment Spending