Economy Shrinks 1.4% in First 3 Months of Year, Raising Recession Fear

Among the factors dragging down the economy at the beginning of 2022 were a fall in retailers’ inventory purchases and a growing trade gap. Consumer spending remained solid.—washingtonpost.com

Answer the following questions to check your understanding of the story.

What approach is the news clip using to measure GDP? What category is not mentioned?

The news clip is using the ______________. The category not mentioned is ______________.

a) income approach; rental income

b) expenditure approach; depreciation

c) expenditure approach; government expenditure

d) expenditure approach; investment

In what situation would changes in imports and exports make net exports more negative?

a) Imports decrease by more than exports decrease

b) Imports increase by more than exports increase

c) Exports increase and imports decrease

d) Imports increase by less than exports increase

Economy Shrinks 1.4% in First 3 Months of Year, Raising Recession Fear

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