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Question
gross domestic product is equivalent to the sum of *
consumer spending, investment spending, government purchases, exports, and imports
consumer spending, investment spending, government purchases, and exports
consumer spending, consumption of fixed capital, government purchases and exports
consumer spending, inventory spending, government purchases and net exports
consumer spending, investment spending, government purchases and net exports
if the consumer price index changes from 100 to 90, economists will know * that
there was deflation in the economy
there was disinflation in the economy
unemployment is increasing in the economy
unemployment is deceasing in the economy
consumers paid 10% higher prices since the base year
For the first question: The expenditure approach to calculating GDP sums consumer spending (C), investment spending (I), government purchases (G), and net exports (exports minus imports, NX). Net exports account for the difference between what a country sells abroad and buys from abroad, so imports are subtracted, not added separately.
For the second question: The Consumer Price Index (CPI) measures average price levels. A drop from 100 to 90 means overall prices decreased by 10%, which is defined as deflation. Disinflation refers to a slowdown in the rate of inflation, not a price decrease. CPI changes do not directly indicate unemployment trends, and a lower CPI means lower, not higher, prices compared to the base year.
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