-Refer to Table 19-3.Consider the data above (in billions of dollars)for an economy: Gross domestic product (in billions of dollars)for this economy equals
When consumers are less confident about their jobs or incomes,they are more likely to
A) reduce purchases of durable goods than nondurable goods.
B) reduce purchases of nondurable goods and increase purchases of durable goods.
C) increase investment spending and decrease consumption spending.
D) increase consumption spending and decrease investment spending.
-Refer to Table 19-4.Consider the data above (in billions of dollars)for an economy: Gross domestic product (in billions of dollars)for this economy equals
Which of the following is not true about the composition of GDP in 2010?
A) The majority of consumer spending is on durable goods.
B) Purchases made by state and local governments are greater than purchases made by the federal government.
C) Imports are greater than exports.
D) Business fixed investment is the largest component of investment.