Which of the following statements is true?
A)Recently, the government purchases share of GDP has been close to 50 percent.
B)The net export share of GDP can be positive or negative.
C)Since World War II, the consumption and investment shares of GDP have moved erratically.
D)Recently, the investment share of GDP has been close to 50 percent.
E)All four spending shares must be positive and must add up to one.

Question

Quizplus · Accepted Answer

The net export share of GDP can indeed be positive or negative, depending on whether a country exports more than it imports (positive) or imports more than it exports (negative). Statements A, C, and D are all false. Statement E is also false, as the four spending shares do not necessarily have to add up to one (they can add up to less than one if there is a trade deficit) and can be negative (if a country is borrowing from abroad).

Which of the Following Statements Is True