Macroeconomics quizzes
How saving and spending shape the economy, and why everyone saving more can leave us all worse off.
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From Macroeconomics: Why Everyone Saving Can Make Us Poorer
A country hosts many foreign-owned factories whose profits flow abroad. How do its GDP and national income compare?
- GDP above its national income
- GDP and national income are equal
- National income above its GDP
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Answer: GDP above its national income
GDP counts output produced within the borders; national income subtracts income paid to foreign owners, so it is lower here.
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