Practice Expenditure Method (2.2.2) - National Income Accounting

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9 questions

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Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What does GDP stand for?
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Think about what GDP measures.
Question 2.
Name one component of the Expenditure Method.
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Recall the acronym CIGX.
3Question 3.
What does the Expenditure Method calculate?
- Total population
- GDP
- National savings
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Consider what GDP represents in an economy.
4Question 4.
True or False: Net exports are calculated as imports minus exports.
- True
- False
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Remember the formula for net exports.
Question 5.
If a country's consumption expenditure increases by 20% but investment decreases by 15%, how will this affect GDP assuming government spending and net exports remain constant?
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Focus on the overall impact of the components on GDP.
Question 6.
A nation has high imports but increasing net exports in the same year. How can this impact future government spending and economic planning?
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Consider the long-term implications of trade balances on government finances.

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