True or False:
1. Fixed investments include all spending on capital goods as well as on residential construction.
2. Investment spending is the most volatile category of GDP.
3. Government expenditures on goods and services as a proportion of GDP have grown slowly over the last 30 years.
4. Because exports are consumed in other countries, they are omitted from measures of domestic GDP.
5. Net exports are a small proportion of GDP and are often negative for the United States.
6. When someone makes an expenditure for a good or service, that spending creates income for someone else.
7. The net income of foreigners must be subtracted from GDP to get GNP.
8. National income is a measure of the income earned by owners of resources and available for spending after taxes.
9. The primary problem in calculating accurate U.S. GDP statistics is that the “yardstick” used in adding together the values of different products, the U.S. dollar, changes in value over time.
10. Nominal GDP equals real GDP divided by the price-level index, times 100.