Please explain the following:

1. One way to estimate GDP is to:

Multiple Choice

a. measure the total expenditure of an economy.

b. add up all the money people spend buying final and intermediate goods and services.

c. add together the market value of only final services sold in the economy.

d. add together the market value of only final goods sold in the economy and not services.

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2.The marginal propensity to consume (MPC) is defined to be:

Multiple Choice

a. the change in consumption divided by the change in disposable income.

b. total income divided by total consumption.

c. total consumption divided by the change in disposable income.

d. the change in consumption divided by total disposable income.

3.An inflationary output gap is defined to be when the current level of output is:

Multiple Choice

a. below full employment GDP.

b. above full employment GDP.

c. equivalent to full employment GDP.

d. high enough to cause an unexpected amount of inflation.

Thank you