6. The only component of the aggregate expenditure formula that can appear with a negative sign is: a) saving b) government purchases C) consumption d) investment e) net exports 7. The CPI/RPI is constructed using: a) a basket of goods and services that includes every item included in the nation's GDP. a basket of goods and services purchased by a typical urban consumer. a basket of intermediate goods purchased by a typical business to use in the production process. d) none of the above. 8. If the CPI increases from one year to the next, it can be concluded that the economy has experienced: a) growth. stagnation. stagflation. inflation. deflation 9. Nominal GDP differs from real GDP in that: a) nominal GDP tends to increase when total production of output in the economy increases, while real GDP does not. b) nominal GDP is measured in base year prices, while real GDP is measured in current year prices. C) nominal GDP is measured in current year prices, while real GDP is measured in base year prices. d) real GDP excludes taxes paid to the government, while nominal GDP does not. 10. Economic growth is: a ) the achievement of higher living standards. the annual percentage change in real GDP or in per capita real GDP. C) the annual percentage change in disposable income. the annual percentage change in nominal GDP or in per capita nominal GDP. the annual percentage change in personal income. 11. If real GDP per capita is increasing, real output is: a) growing less rapidly than the population. growing more rapidly than the population. growing at the same rate as the population. growing more rapidly than the price level. growing at the same rate as the price level