Suppose an individual buys 100 shares of Blackberry stock for $10 each

Explain why each of the following statements is True, False, or Uncertain
according to economic principles. Use diagrams where appropriate. It is the
explanation that is important.
A5-1. Suppose an individual buys 100 shares of Blackberry stock for $10 each on the
stock market and pays abrokerage commission of $9.99 for the transaction. The
transaction adds $1,009.99 to GDP.
A5-2. Since Canada is a net foreign debtor country, its residents produce more income
than they receive. That is, GDP is greater than GNP.
A5-3. Suppose a country produces two final goods, Pizzas (Ps) and Tacos (Ts). In Year 1
it produced 10 Ps at a price of $5 each and 50 Ts at a price of $1 each. In Year 2 it
produced 15 Ps at a price of $6 and 50 Ts at a price of $2. If Year 1 is the base year, the
inflation rate in the GDP deflator between Years 1 and 2 is 52%.
A5-4. If consumption is greater than disposable income, the marginal propensity to save
from disposable income must be negative.
A5-5. When aggregate inventories fall below planned levels, aggregate output increases.
A5-6. If the domestic price level increases, the price of domestic goods increases relative
to foreign goods. This will result in a downward shift of aggregate expenditures and a
leftward shift of the aggregate demand curve.
A5-7. The economy must be composed of price-setting firms for the short-run aggregate
supply curve to be upward sloping.
A5-8. A given increase in aggregate demand has a larger effect on national income the
less steeply do unit costs rise
with increases in production.