Question

gdp measured by the expenditure model 2 points consumer spending + investment + government spending + net exports consumer spending + interest + government + net exports consumer spending + business spending + government spending + net exports if prices increased 5% last quarter and now increased by 3% it means _ 1 point prices went down prices went up

Explanation:

1. The formula for GDP using the expenditure - approach is GDP = consumer spending + investment + government spending+ net exports. This is a well - known economic formula.
2. If prices increased by 5% last quarter and then by 3% now, clearly the overall trend is an increase in prices as both changes are positive percentage increases.

Answer:

1. consumer spending + Investment + Government Spending + net exports
2. prices went up