Homework Answers
As we know that, GDP is the monetary value of all goods and services produced in an economy over a period of time say one year. The GDP doesn't take into account the net factor income from abroad.
There are three methods of measuring GDP as:-
Income method, expenditure method and production or output method.
The correct option is (True).
The savings of an individual are the expenditure also. The income of one person is devoted to Consumption or savings.
Hope you got the answer.
Kindly comment for further explanation.
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True or false. with explanation
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3. Is the following statement true or false? "If consumers spend their entire income on two goods. Suppose that one good is an inferior good, then the other good must be a normal good." Write a brief but convincing explanation of your answer (8 points).
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