ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Increase / increase
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Increase / decrease
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No change / increase
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Decrease / decrease
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Decrease / increase
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Detailed explanation-1: -The calculation of a country’s GDP encompasses all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. (Exports are added to the value and imports are subtracted).
Detailed explanation-2: -GDP = private consumption + gross private investment + government investment + government spending + (exports – imports). GDP is usually calculated by the national statistical agency of the country following the international standard.
Detailed explanation-3: -The purchase is counted as consumption if the computer was manufactured in the United States; otherwise, it is ignored. The purchase is included as part of investment. The purchase is always counted as consumption.
Detailed explanation-4: -Durable goods-cars, furniture, large appliances. Non-durable goods-clothing, food, fuel. Services-banking, health care, education. 18-Jan-2022