True/False (1 point each) [a = True; b = False] Indicate whether the statement is true or false. 1. 2. 10. Wheat produced in the U.S. and sold to Japan would not add to U.S. GDP. The GDP deflator is a measure of the aggregate price level. If inflation is higher than expected it benefits people who earn interest income. There is always some frictional and structural unemployment present in a dynamic economy. In economics, the term investment refers to business spending for capital goods, additional inventory, and household purchase of new houses, but not to a financial transaction such as buying bonds or stocks. Cyclical unemployment is unemployment that increases during business cycle expansions. The payments by the British government to a US economist for her part-time consulting work in UK will be considered as factor income from abroad. The value of the services performed by a homemaker within the household is included in the measurement of GDP. A depreciation of the Swiss franc relative to the British pound would tend to increase Swiss exports to Great Britain. A country with a deficit in the merchandise account has more exports of goods than imports