Circle the correct answer to each question.

5. Which of the following is a nal product? A} diesel fuel bought for a delivery truck E} a haircut C] fertilizer purchased by a farm supplier D} Chevrolet windows purchased by a General Motors assembly plant E} expenditures on stationery by an insurance company B.Economists dene investment to include: A} any increase in business inventories E} the addition of cash to a savings account 0] the purchase of common or preferred stock D} the purchase of any durable good E} the purchase of any non-durable good T. If depreciation exceeds gross investment. it can be concluded that: A} GDP is rising, but GNP is declining B} net investment is negative C] the economy is importing more than it is exporting D] the economy's capital stock is expanding E} GNP is declining, but GDP is rising 3.Net exports may be dened as: A} the portion of domestic products sent to other countries El} exports plus imports C] exports minus imports D} imports minus exports E} exports minus net investment income to the rest of the wortd QReal GDP measures: A} current output in current dollars B} current output in constant dollars from a given year 0] GDP per person in current dollars D] GDP per person in constant dollars from a given year E} none of the above 1f].lf nominal GDP rises: A} real GDP may either rise or fall E} the price level has risen C] real GDP must fall D} real GDP must also rise E} the price level has fallen