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There is just one approach for the computation of GDP.
There is just one approach for the computation of GDP.
There are three approaches: the expenditure (Y=C+I+G+X-M), the income (sum of wages, rents, interest and profits) and the production approach (sum of gross value added across sectors).
Real appreciations increase exports and decrease imports, thus deteriorating the current account balance.
Real appreciations increase exports and decrease imports, thus deteriorating the current account balance.
False. Real appreciations increase the relative price of domestic goods versus foreign goods leading to lower price competitiveness, less exports, more imports and a deterioration in the trade balance.
In a single country it is not possible to have more than one asset performing simultaneously the role of money.
In a single country it is not possible to have more than one asset performing simultaneously the role of money.
True. Money is characterized by performing simultaneously three tasks: unit of account, reserve of value and being widely accepted as a means of payment. The latter task is performed by a single asset at each moment in time.
In the Keynesian models, the higher the households’ savings rate, the higher the impact of fiscal policy on GDP.
In the Keynesian models, the higher the households’ savings rate, the higher the impact of fiscal policy on GDP.
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Total income ni the economy, obtained by summing wages, rents, interest payments and profits, si larger than total value added in the economy.
Total income ni the economy, obtained by summing wages, rents, interest payments and profits, si larger than total value added in the economy.
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If GDP yesterday was 10, GDP today si 13 and GDP today at prices of yesterday si 11, then the real growth of GDP today was 10%.
If GDP yesterday was 10, GDP today si 13 and GDP today at prices of yesterday si 11, then the real growth of GDP today was 10%.
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There is a positive relationship between the price of bonds and the interest rate.
There is a positive relationship between the price of bonds and the interest rate.
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High domestic savings make it more likely that the economy records a surplus in the external accounts.
High domestic savings make it more likely that the economy records a surplus in the external accounts.
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