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Exhibit 11-10 GDP Data (Billions of Dollars) In Exhibit 11-10, and Using the Expenditures Approach, Compute Net

Question 31

Multiple Choice

Exhibit 11-10 GDP data (billions of dollars)  Indirect business taxes $600 Depreciation 950 Change in business inventories 50 Compensation of employees 5,400 Corporate profits 700 Durable goods 600 Exports 100 Social Security taxes 360 Transfer payments 300 Fixed investment 950 Government spending 800 Imports 150 Net interest 500 Nondurable goods 2,000 Personal taxes 1,000 Rental income 200 Services 4,000\begin{array} { | l | r | } \hline \text { Indirect business taxes } & \$ 600 \\\hline \text { Depreciation } & 950 \\\hline \text { Change in business inventories } & 50 \\\hline \text { Compensation of employees } & 5,400 \\\hline \text { Corporate profits } & 700 \\\hline \text { Durable goods } & 600 \\\hline \text { Exports } & 100 \\\hline \text { Social Security taxes } & 360 \\\hline \text { Transfer payments } & 300 \\\hline \text { Fixed investment } & 950 \\\hline \text { Government spending } & 800 \\\hline \text { Imports } & 150 \\\hline \text { Net interest } & 500 \\\hline \text { Nondurable goods } & 2,000 \\\hline \text { Personal taxes } & 1,000 \\\hline \text { Rental income } & 200 \\\hline \text { Services } & 4,000 \\\hline\end{array} In Exhibit 11-10, and using the expenditures approach, compute net exports (X-M) . Which of the following is correct ?


A) $500 billion.
B) $150 billion.
C) $100 billion.
D) -$50 billion.

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