ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Foreign countries buying US treasury bills
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Transfer payments to the elderly
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Salary bonuses given to investment bankers
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Undeclared wages paid to illegal aliens
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The change in the value of real estate in the US
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Detailed explanation-1: -C (explanation: Wages are counted in GDP under the income approach. Bonuses to investment bankers are a form a wages.
Detailed explanation-2: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports.
Detailed explanation-3: -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-4: -The official measure of GDP does not include measurements of leisure time available, nonmarket production, production in the underground economy, the distribution of income, or production externalities (e.g., pollution).