True or False:
1. Measuring the performance of our economy is important to private businesses and to macroeconomic policymakers in setting goals and developing policy recommendations.
2. All goods and services exchanged in the current period are included in this year’s GDP.
3. The value of a good or service is determined by the market prices at which goods and services sell.
4. If we counted the value of intermediate goods as well as the full value of the final products in GDP, we would be double counting.
5. Following the expenditure method, GDP = C + I + G + X.
6. The distinction between whether a good is durable or nondurable is clear and easy to apply.
7. In boom periods, expenditures on consumer durables often increase more than expenditures on nondurables.
8. As incomes have risen, expenditures on services have been growing more slowly than expenditures on goods.
9. The share of total consumption going for services now exceeds 50 percent.
10. Purchases of stock are included as part of investment in the national income accounts.