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Problem 1: In the equation GDP = C + I + G + NX, NX stands for
A. exports.
B. expenditures.
C. exports minus imports.
D. imports minus exports.
E. export taxes.
Problem 2: Imagine an economy that produces only two goods, cheese and crackers. Calculate GDP for this economy if cheese retails for $3 a pound and 10 pounds are produced while crackers sell for $2 a pound and 20 pounds are produced.
A. $35
B. $1,200
C. $70
D. $150
E. Not enough information is given to calculate GDP.
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