To simplify the analysis, the textbook assumes that
A) consumption is the only component of expenditures that responds to income and income is the only influence on consumption.
B) consumption is the only component of expenditures that responds to government purchases and government purchases are the only influence on consumption.
C) net exports are zero.
D) there is no investment spending.
E) expenditures change only because of changes in consumption.
Correct Answer:
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Q46: Suppose real GDP in 2015 is $6,105
Q47: Which of the following statements is true?
A)Most
Q48: A conditional forecast of real GDP is
A)a
Q49: An improvement in consumer confidence will affect
Q50: Which of the following relationships do forecasters
Q52: What is meant by a conditional forecast,
Q53: Economic forecasters seldom differ in their one-year-ahead
Q54: One year-ahead-forecasts for real GDP
A)reflect forecasters' beliefs
Q55: Suppose real GDP in 2015 is $15,500
Q56: To forecast real GDP, economic forecasters divide
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