ur email will be recorded when you submit this form

If inflation were caused by a sudden increase in aggregate demand, then:

1 point

real GDP would always increase.

it would be costless because it was entirely unexpected.

real GDP would always fall.

real GDP might actually stay where it is because the economy was already at its full potential.

none of the above.

If we say that a country's currency has been devalued, we mean that:

1 point

it has gone off the gold standard.

the domestic purchasing power of its currency unit has increased.

its government has increased the price it will pay for gold.

it is experiencing an unfavorable balance of trade.

the prices of at least some foreign currencies, as expressed in that country's domestic currency, have fallen.

If real and nominal interest rates fall, then:

1 point

investment spending should fall, as well.

investment spending should rise.

consumption expenditure should fall as people save more.

the marginal propensity to save should rise, shifting the entire consumption schedule.

investment spending should rise primarily to take up the slack left by lower consumption expenditure.

In a system of managed floating exchange rates:

1 point

some countries may have chronic deficits in their current account.

countries can still intervene in the exchange market.

exchange rates may be quite volatile.

forward markets for currency exist and function routinely.

all of the above are true.

A decrease in the community's MPC means that:

1 point

purchases by consumers will absorb a smaller share than before of any further increases in the community's output.

purchases by consumers will absorb a larger share than before of any further increases in the community's output.

a smaller share of the communities total resources will now be needed to satisfy investment demands.

a larger share of the community's total resources will now be needed to satisfy consumer demands.

there will now be a smaller MPS.

Some countries like undervalued exchange rates, perhaps unwisely, because:

1 point

it makes imports cheaper.

it alleviates the balance-of-payments problem.

it promotes exports.

it solves the liquidity problem.

it decreases exports.

The consumption function of families refers to:

1 point

the way the family would allocate a fixed income on food, clothing, etc.

the incentive of a family to obtain more income in order to spend more.

the way the family advocates its consumption on food, shelter, clothing, etc.

the fraction of an extra dollar of income that would be spent on consumption.

the amounts of consumption expenditure associated with different levels of income.

Which of the following is not considered a category of investment?

1 point

Stock and bond purchases.

Purchases of plant and equipment.

Purchases adding to inventories.

Residential housing construction.

None of the above.

An increase in the money supply:

1 point

must lower interest rates for all time.

raises interest rates for all time.

cannot affect the interest rate since it is a dimensionless pure number.

though it tends to lower interest rates at first, may (by speeding up inflation) end up raising nominal interest rates.

does none of the above.

A favourable balance of trade indicates

1 point

an excess of merchandise exports and other current account credits over merchandise imports and other current account debits.

the receipt of more foreign currency than domestic currency sent abroad.

an excess of merchandise exports over imports.

an excess of total credits over total debits in the entire balance of payments.

a flow of financial capital into the country.

Which of the following are objectives of the Monetary policy?

1 point

to maintain economic stability.

low and stable inflation.

low unemployment.

stable exchange rate.

all of the above.

Which of the following should be expected to shift the aggregate demand curve to the right?

1 point

an increase in government spending.

a reduction in net exports.

a reduction in labor force participation.

an increase in taxes.

a decrease in the money-supply.

A reduction in the money supply:

1 point

lowers interest rates now and in the future.

may eventually lower interest rates if it makes price inflation subside.

cannot affect the interest rate.

tends to be offset by an equivalent drop in aggregate demand.

none of the above.

Stagflation can be illustrated in terms of aggregate demand and supply curves by

1 point

an upward shift in the aggregate demand curve.

an upward shift in the aggregate supply curve.

a downward shift in the aggregate demand curve.

an upward movement along the aggregate supply curve.

a downward movement along the aggregate demand curve.

Which of the following is a reason why the aggregate demand curve should be drawn downward-sloping?

1 point

Higher prices reduce potential GDP by reducing labor force participation.

Higher prices cause interest rates to fall, thereby depressing investment.

Higher prices cause interest rates to rise, thereby depressing investment.

Higher prices inspire increased labor force participation and therefore increase consumption expenditures.

None of the above makes any sense in explaining the negative slope of an aggregate curve.

Which of the following is not included in "investment"?

1 point

An increase in inventories.

The addition of a new wing to the factory.

The installation of new factory machinery.

New motor truck production.

The purchase of an old factory by a merging conglomerate.

The link from monetary policy to changes in real macroeconomic variables is one that:

1 point

depends not at all on the interest rate.

depends only upon the sensitivity of investment to changes in the interest rate.

depends only upon the sensitivity of demand for money to changes in the interest rate.

depends upon the sensitivity of both investment and the demand for money to changes in the interest rate.

is direct, and works automatically within the walls of American banks.

Disposable income includes:

1 point

corporate taxes.

undistributed corporate profits.

depreciation.

dividend payments.

none of the above.

Real GDP is computed by:

1 point

subtracting depreciation costs from nominal GDP.

multiplying Nominal GDP by a cost-of-living increase.

adding the dollar value of services to Nominal GDP.

dividing Nominal GDP by the GDP price deflator.

none of the above.

Which of the following is a part of the Revenue Expenditure?

1 point

Interest Payments

Repayment of principle / loans

Lending

Purchase of assets

Suppose that the supply of money were fixed. An increase in the demand for money should be expected to cause:

1 point

the equilibrium rate of interest to climb.

the equilibrium quantity of money demanded to climb.

either answer A or B. depending upon circumstance.

both answers A and B. without reservations.

none of the above without some sort of accommodating Fed policy adjustment.

Which of the following are typical characteristics of a recession?

1 point

The length of the average workweek declines.

Inflation slows.

Business profits fall sharply.

All of the above.

None of the above.

The definition of M1 includes:

1 point

coins, currency, and time deposits.

coins, currency, and demand deposits.

coins, currency, and all bank deposits.

all currencies, both in banks and in the hands of the public.

none of the above.

Value added is measured as the:

1 point

difference between a firm's sales and its purchases of materials and services from other firms.

difference between net and gross investment.

additional output the economy produces when it is at full employment.

additional consumer goods produced when the economy moves from war-time to peace-time.

increase in corporate profits from one year to the next.

The amount of the government's budget differs from its contribution to GDP by:

1 point

the sum of all transfer payments made by the government.

the dollar amount of net exports.

the interest paid on the government debt.

the face value of all bills and coins produced during the year.

all of the above.

Send me a copy of my responses.

Submit

Page 1 of 1

Clear form

This form was created inside of Indian Institute of Technology Jodhpur.Report Abuse

Forms

Macro Quiz 3

Choose the correct o..2@iitj.ac.inSwitch account

Your email will be recorded when you submit this form

If inflation were caused by a sudden increase in aggregate demand, then:

1 point

real GDP would always increase.

it would be costless because it was entirely unexpected.

real GDP would always fall.

real GDP might actually stay where it is because the economy was already at its full potential.

none of the above.

If we say that a country's currency has been devalued, we mean that:

1 point

it has gone off the gold standard.

the domestic purchasing power of its currency unit has increased.

its government has increased the price it will pay for gold.

it is experiencing an unfavorable balance of trade.

the prices of at least some foreign currencies, as expressed in that country's domestic currency, have fallen.

If real and nominal interest rates fall, then:

1 point

investment spending should fall, as well.

investment spending should rise.

consumption expenditure should fall as people save more.

the marginal propensity to save should rise, shifting the entire consumption schedule.

investment spending should rise primarily to take up the slack left by lower consumption expenditure.

In a system of managed floating exchange rates:

1 point

some countries may have chronic deficits in their current account.

countries can still intervene in the exchange market.

exchange rates may be quite volatile.

forward markets for currency exist and function routinely.

all of the above are true.

A decrease in the community's MPC means that:

1 point

purchases by consumers will absorb a smaller share than before of any further increases in the community's output.

purchases by consumers will absorb a larger share than before of any further increases in the community's output.

a smaller share of the communities total resources will now be needed to satisfy investment demands.

a larger share of the community's total resources will now be needed to satisfy consumer demands.

there will now be a smaller MPS.

Some countries like undervalued exchange rates, perhaps unwisely, because:

1 point

it makes imports cheaper.

it alleviates the balance-of-payments problem.

it promotes exports.

it solves the liquidity problem.

it decreases exports.

The consumption function of families refers to:

1 point

the way the family would allocate a fixed income on food, clothing, etc.

the incentive of a family to obtain more income in order to spend more.

the way the family advocates its consumption on food, shelter, clothing, etc.

the fraction of an extra dollar of income that would be spent on consumption.

the amounts of consumption expenditure associated with different levels of income.

Which of the following is not considered a category of investment?

1 point

Stock and bond purchases.

Purchases of plant and equipment.

Purchases adding to inventories.

Residential housing construction.

None of the above.

An increase in the money supply:

1 point

must lower interest rates for all time.

raises interest rates for all time.

cannot affect the interest rate since it is a dimensionless pure number.

though it tends to lower interest rates at first, may (by speeding up inflation) end up raising nominal interest rates.

does none of the above.

A favourable balance of trade indicates

1 point

an excess of merchandise exports and other current account credits over merchandise imports and other current account debits.

the receipt of more foreign currency than domestic currency sent abroad.

an excess of merchandise exports over imports.

an excess of total credits over total debits in the entire balance of payments.

a flow of financial capital into the country.

Which of the following are objectives of the Monetary policy?

1 point

to maintain economic stability.

low and stable inflation.

low unemployment.

stable exchange rate.

all of the above.

Which of the following should be expected to shift the aggregate demand curve to the right?

1 point

an increase in government spending.

a reduction in net exports.

a reduction in labor force participation.

an increase in taxes.

a decrease in the money-supply.

A reduction in the money supply:

1 point

lowers interest rates now and in the future.

may eventually lower interest rates if it makes price inflation subside.

cannot affect the interest rate.

tends to be offset by an equivalent drop in aggregate demand.

none of the above.

Stagflation can be illustrated in terms of aggregate demand and supply curves by

1 point

an upward shift in the aggregate demand curve.

an upward shift in the aggregate supply curve.

a downward shift in the aggregate demand curve.

an upward movement along the aggregate supply curve.

a downward movement along the aggregate demand curve.

Which of the following is a reason why the aggregate demand curve should be drawn downward-sloping?

1 point

Higher prices reduce potential GDP by reducing labor force participation.

Higher prices cause interest rates to fall, thereby depressing investment.

Higher prices cause interest rates to rise, thereby depressing investment.

Higher prices inspire increased labor force participation and therefore increase consumption expenditures.

None of the above makes any sense in explaining the negative slope of an aggregate curve.

Which of the following is not included in "investment"?

1 point

An increase in inventories.

The addition of a new wing to the factory.

The installation of new factory machinery.

New motor truck production.

The purchase of an old factory by a merging conglomerate.

The link from monetary policy to changes in real macroeconomic variables is one that:

1 point

depends not at all on the interest rate.

depends only upon the sensitivity of investment to changes in the interest rate.

depends only upon the sensitivity of demand for money to changes in the interest rate.

depends upon the sensitivity of both investment and the demand for money to changes in the interest rate.

is direct, and works automatically within the walls of American banks.

Disposable income includes:

1 point

corporate taxes.

undistributed corporate profits.

depreciation.

dividend payments.

none of the above.

Real GDP is computed by:

1 point

subtracting depreciation costs from nominal GDP.

multiplying Nominal GDP by a cost-of-living increase.

adding the dollar value of services to Nominal GDP.

dividing Nominal GDP by the GDP price deflator.

none of the above.

Which of the following is a part of the Revenue Expenditure?

1 point

Interest Payments

Repayment of principle / loans

Lending

Purchase of assets

Suppose that the supply of money were fixed. An increase in the demand for money should be expected to cause:

1 point

the equilibrium rate of interest to climb.

the equilibrium quantity of money demanded to climb.

either answer A or B. depending upon circumstance.

both answers A and B. without reservations.

none of the above without some sort of accommodating Fed policy adjustment.

Which of the following are typical characteristics of a recession?

1 point

The length of the average workweek declines.

Inflation slows.

Business profits fall sharply.

All of the above.

None of the above.

The definition of M1 includes:

1 point

coins, currency, and time deposits.

coins, currency, and demand deposits.

coins, currency, and all bank deposits.

all currencies, both in banks and in the hands of the public.

none of the above.

Value added is measured as the:

1 point

difference between a firm's sales and its purchases of materials and services from other firms.

difference between net and gross investment.

additional output the economy produces when it is at full employment.

additional consumer goods produced when the economy moves from war-time to peace-time.

increase in corporate profits from one year to the next.

The amount of the government's budget differs from its contribution to GDP by:

1 point

the sum of all transfer payments made by the government.

the dollar amount of net exports.

the interest paid on the government debt.

the face value of all bills and coins produced during the year.

all of the above.

Send me a copy of my responses.

Submit

Page 1 of 1

Clear form

This form was created inside of Indian Institute of Technology Jodhpur.Report Abuse

Forms

Macro Quiz 3

Choose the correct o..2@iitj.ac.inSwitch account

Your email will be recorded when you submit this form

If inflation were caused by a sudden increase in aggregate demand, then:

1 point

real GDP would always increase.

it would be costless because it was entirely unexpected.

real GDP would always fall.

real GDP might actually stay where it is because the economy was already at its full potential.

none of the above.

If we say that a country's currency has been devalued, we mean that:

1 point

it has gone off the gold standard.

the domestic purchasing power of its currency unit has increased.

its government has increased the price it will pay for gold.

it is experiencing an unfavorable balance of trade.

the prices of at least some foreign currencies, as expressed in that country's domestic currency, have fallen.

If real and nominal interest rates fall, then:

1 point

investment spending should fall, as well.

investment spending should rise.

consumption expenditure should fall as people save more.

the marginal propensity to save should rise, shifting the entire consumption schedule.

investment spending should rise primarily to take up the slack left by lower consumption expenditure.

In a system of managed floating exchange rates:

1 point

some countries may have chronic deficits in their current account.

countries can still intervene in the exchange market.

exchange rates may be quite volatile.

forward markets for currency exist and function routinely.

all of the above are true.

A decrease in the community's MPC means that:

1 point

purchases by consumers will absorb a smaller share than before of any further increases in the community's output.

purchases by consumers will absorb a larger share than before of any further increases in the community's output.

a smaller share of the communities total resources will now be needed to satisfy investment demands.

a larger share of the community's total resources will now be needed to satisfy consumer demands.

there will now be a smaller MPS.

Some countries like undervalued exchange rates, perhaps unwisely, because:

1 point

it makes imports cheaper.

it alleviates the balance-of-payments problem.

it promotes exports.

it solves the liquidity problem.

it decreases exports.

The consumption function of families refers to:

1 point

the way the family would allocate a fixed income on food, clothing, etc.

the incentive of a family to obtain more income in order to spend more.

the way the family advocates its consumption on food, shelter, clothing, etc.

the fraction of an extra dollar of income that would be spent on consumption.

the amounts of consumption expenditure associated with different levels of income.

Which of the following is not considered a category of investment?

1 point

Stock and bond purchases.

Purchases of plant and equipment.

Purchases adding to inventories.

Residential housing construction.

None of the above.

An increase in the money supply:

1 point

must lower interest rates for all time.

raises interest rates for all time.

cannot affect the interest rate since it is a dimensionless pure number.

though it tends to lower interest rates at first, may (by speeding up inflation) end up raising nominal interest rates.

does none of the above.

A favourable balance of trade indicates

1 point

an excess of merchandise exports and other current account credits over merchandise imports and other current account debits.

the receipt of more foreign currency than domestic currency sent abroad.

an excess of merchandise exports over imports.

an excess of total credits over total debits in the entire balance of payments.

a flow of financial capital into the country.

Which of the following are objectives of the Monetary policy?

1 point

to maintain economic stability.

low and stable inflation.

low unemployment.

stable exchange rate.

all of the above.

Which of the following should be expected to shift the aggregate demand curve to the right?

1 point

an increase in government spending.

a reduction in net exports.

a reduction in labor force participation.

an increase in taxes.

a decrease in the money-supply.

A reduction in the money supply:

1 point

lowers interest rates now and in the future.

may eventually lower interest rates if it makes price inflation subside.

cannot affect the interest rate.

tends to be offset by an equivalent drop in aggregate demand.

none of the above.

Stagflation can be illustrated in terms of aggregate demand and supply curves by

1 point

an upward shift in the aggregate demand curve.

an upward shift in the aggregate supply curve.

a downward shift in the aggregate demand curve.

an upward movement along the aggregate supply curve.

a downward movement along the aggregate demand curve.

Which of the following is a reason why the aggregate demand curve should be drawn downward-sloping?

1 point

Higher prices reduce potential GDP by reducing labor force participation.

Higher prices cause interest rates to fall, thereby depressing investment.

Higher prices cause interest rates to rise, thereby depressing investment.

Higher prices inspire increased labor force participation and therefore increase consumption expenditures.

None of the above makes any sense in explaining the negative slope of an aggregate curve.

Which of the following is not included in "investment"?

1 point

An increase in inventories.

The addition of a new wing to the factory.

The installation of new factory machinery.

New motor truck production.

The purchase of an old factory by a merging conglomerate.

The link from monetary policy to changes in real macroeconomic variables is one that:

1 point

depends not at all on the interest rate.

depends only upon the sensitivity of investment to changes in the interest rate.

depends only upon the sensitivity of demand for money to changes in the interest rate.

depends upon the sensitivity of both investment and the demand for money to changes in the interest rate.

is direct, and works automatically within the walls of American banks.

Disposable income includes:

1 point

corporate taxes.

undistributed corporate profits.

depreciation.

dividend payments.

none of the above.

Real GDP is computed by:

1 point

subtracting depreciation costs from nominal GDP.

multiplying Nominal GDP by a cost-of-living increase.

adding the dollar value of services to Nominal GDP.

dividing Nominal GDP by the GDP price deflator.

none of the above.

Which of the following is a part of the Revenue Expenditure?

1 point

Interest Payments

Repayment of principle / loans

Lending

Purchase of assets

Suppose that the supply of money were fixed. An increase in the demand for money should be expected to cause:

1 point

the equilibrium rate of interest to climb.

the equilibrium quantity of money demanded to climb.

either answer A or B. depending upon circumstance.

both answers A and B. without reservations.

none of the above without some sort of accommodating Fed policy adjustment.

Which of the following are typical characteristics of a recession?

1 point

The length of the average workweek declines.

Inflation slows.

Business profits fall sharply.

All of the above.

None of the above.

The definition of M1 includes:

1 point

coins, currency, and time deposits.

coins, currency, and demand deposits.

coins, currency, and all bank deposits.

all currencies, both in banks and in the hands of the public.

none of the above.

Value added is measured as the:

1 point

difference between a firm's sales and its purchases of materials and services from other firms.

difference between net and gross investment.

additional output the economy produces when it is at full employment.

additional consumer goods produced when the economy moves from war-time to peace-time.

increase in corporate profits from one year to the next.

The amount of the government's budget differs from its contribution to GDP by:

1 point

the sum of all transfer payments made by the government.

the dollar amount of net exports.

the interest paid on the government debt.

the face value of all bills and coins produced during the year.

all of the above.

Send me a copy of my responses.

Submit

Page 1 of 1

Clear form

This form was created inside of Indian Institute of Technology Jodhpur.Report Abuse

Forms

Macro Quiz 3

Choose the correct o..2@iitj.ac.inSwitch account

Your email will be recorded when you submit this form

If inflation were caused by a sudden increase in aggregate demand, then:

1 point

real GDP would always increase.

it would be costless because it was entirely unexpected.

real GDP would always fall.

real GDP might actually stay where it is because the economy was already at its full potential.

none of the above.

If we say that a country's currency has been devalued, we mean that:

1 point

it has gone off the gold standard.

the domestic purchasing power of its currency unit has increased.

its government has increased the price it will pay for gold.

it is experiencing an unfavorable balance of trade.

the prices of at least some foreign currencies, as expressed in that country's domestic currency, have fallen.

If real and nominal interest rates fall, then:

1 point

investment spending should fall, as well.

investment spending should rise.

consumption expenditure should fall as people save more.

the marginal propensity to save should rise, shifting the entire consumption schedule.

investment spending should rise primarily to take up the slack left by lower consumption expenditure.

In a system of managed floating exchange rates:

1 point

some countries may have chronic deficits in their current account.

countries can still intervene in the exchange market.

exchange rates may be quite volatile.

forward markets for currency exist and function routinely.

all of the above are true.

A decrease in the community's MPC means that:

1 point

purchases by consumers will absorb a smaller share than before of any further increases in the community's output.

purchases by consumers will absorb a larger share than before of any further increases in the community's output.

a smaller share of the communities total resources will now be needed to satisfy investment demands.

a larger share of the community's total resources will now be needed to satisfy consumer demands.

there will now be a smaller MPS.

Some countries like undervalued exchange rates, perhaps unwisely, because:

1 point

it makes imports cheaper.

it alleviates the balance-of-payments problem.

it promotes exports.

it solves the liquidity problem.

it decreases exports.

The consumption function of families refers to:

1 point

the way the family would allocate a fixed income on food, clothing, etc.

the incentive of a family to obtain more income in order to spend more.

the way the family advocates its consumption on food, shelter, clothing, etc.

the fraction of an extra dollar of income that would be spent on consumption.

the amounts of consumption expenditure associated with different levels of income.

Which of the following is not considered a category of investment?

1 point

Stock and bond purchases.

Purchases of plant and equipment.

Purchases adding to inventories.

Residential housing construction.

None of the above.

An increase in the money supply:

1 point

must lower interest rates for all time.

raises interest rates for all time.

cannot affect the interest rate since it is a dimensionless pure number.

though it tends to lower interest rates at first, may (by speeding up inflation) end up raising nominal interest rates.

does none of the above.

A favourable balance of trade indicates

1 point

an excess of merchandise exports and other current account credits over merchandise imports and other current account debits.

the receipt of more foreign currency than domestic currency sent abroad.

an excess of merchandise exports over imports.

an excess of total credits over total debits in the entire balance of payments.

a flow of financial capital into the country.

Which of the following are objectives of the Monetary policy?

1 point

to maintain economic stability.

low and stable inflation.

low unemployment.

stable exchange rate.

all of the above.

Which of the following should be expected to shift the aggregate demand curve to the right?

1 point

an increase in government spending.

a reduction in net exports.

a reduction in labor force participation.

an increase in taxes.

a decrease in the money-supply.

A reduction in the money supply:

1 point

lowers interest rates now and in the future.

may eventually lower interest rates if it makes price inflation subside.

cannot affect the interest rate.

tends to be offset by an equivalent drop in aggregate demand.

none of the above.

Stagflation can be illustrated in terms of aggregate demand and supply curves by

1 point

an upward shift in the aggregate demand curve.

an upward shift in the aggregate supply curve.

a downward shift in the aggregate demand curve.

an upward movement along the aggregate supply curve.

a downward movement along the aggregate demand curve.

Which of the following is a reason why the aggregate demand curve should be drawn downward-sloping?

1 point

Higher prices reduce potential GDP by reducing labor force participation.

Higher prices cause interest rates to fall, thereby depressing investment.

Higher prices cause interest rates to rise, thereby depressing investment.

Higher prices inspire increased labor force participation and therefore increase consumption expenditures.

None of the above makes any sense in explaining the negative slope of an aggregate curve.

Which of the following is not included in "investment"?

1 point

An increase in inventories.

The addition of a new wing to the factory.

The installation of new factory machinery.

New motor truck production.

The purchase of an old factory by a merging conglomerate.

The link from monetary policy to changes in real macroeconomic variables is one that:

1 point

depends not at all on the interest rate.

depends only upon the sensitivity of investment to changes in the interest rate.

depends only upon the sensitivity of demand for money to changes in the interest rate.

depends upon the sensitivity of both investment and the demand for money to changes in the interest rate.

is direct, and works automatically within the walls of American banks.

Disposable income includes:

1 point

corporate taxes.

undistributed corporate profits.

depreciation.

dividend payments.

none of the above.

Real GDP is computed by:

1 point

subtracting depreciation costs from nominal GDP.

multiplying Nominal GDP by a cost-of-living increase.

adding the dollar value of services to Nominal GDP.

dividing Nominal GDP by the GDP price deflator.

none of the above.

Which of the following is a part of the Revenue Expenditure?

1 point

Interest Payments

Repayment of principle / loans

Lending

Purchase of assets

Suppose that the supply of money were fixed. An increase in the demand for money should be expected to cause:

1 point

the equilibrium rate of interest to climb.

the equilibrium quantity of money demanded to climb.

either answer A or B. depending upon circumstance.

both answers A and B. without reservations.

none of the above without some sort of accommodating Fed policy adjustment.

Which of the following are typical characteristics of a recession?

1 point

The length of the average workweek declines.

Inflation slows.

Business profits fall sharply.

All of the above.

None of the above.

The definition of M1 includes:

1 point

coins, currency, and time deposits.

coins, currency, and demand deposits.

coins, currency, and all bank deposits.

all currencies, both in banks and in the hands of the public.

none of the above.

Value added is measured as the:

1 point

difference between a firm's sales and its purchases of materials and services from other firms.

difference between net and gross investment.

additional output the economy produces when it is at full employment.

additional consumer goods produced when the economy moves from war-time to peace-time.

increase in corporate profits from one year to the next.

The amount of the government's budget differs from its contribution to GDP by:

1 point

the sum of all transfer payments made by the government.

the dollar amount of net exports.

the interest paid on the government debt.

the face value of all bills and coins produced during the year.

all of the above.