14.) If total spending rises from one year to the next, then

A the economy must be producing a larger output of goods andservices.

B goods and services must be selling at higher prices.

C either the economy must be producing a larger output of goodsand services, or goods and services must be selling at higherprices, or both.

D employment or productivity must be rising.

13.) The U.S. Air Force pays a Turkish citizen $30,000 to workon a U.S. base in Turkey. As a result,

A U.S. government purchases increase by $30,000; U.S. netexports decrease by $30,000; and U.S. GDP is unaffected.

B U.S. government purchases increase by $30,000; U.S. netexports are unaffected; and U.S. GDP increases by $30,000.

C U.S. government purchases, net exports, and GDP areunaffected.

D U.S. government purchases are unaffected; U.S. net exportsdecrease by $30,000; and U.S. GDP decreases by $30,000.

15.) Which of the following statements about GDP is correct?

A Nominal GDP values production at current prices, whereas realGDP values production at constant prices.

B Nominal GDP values production at constant prices, whereas realGDP values production at current prices.

C Nominal GDP values production at market prices, whereas realGDP values production at the cost of the resources used in theproduction process.

D Nominal GDP values production at the cost of the resourcesused in the production process, whereas real GDP values productionat market prices.

9.) If you buy a burger and fries at your favorite fast foodrestaurant,

A then neither GDP nor consumption will be affected because youwould have eaten at home had you not bought the meal at therestaurant.

B then GDP will be higher, but consumption spending will beunchanged.

C then GDP will be unchanged, but consumption spending will behigher.

D then both GDP and consumption spending will be higher.

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