Identify the cause of higher nominal per capita income growth than real per capita income growth, determine the truthfulness of a statement about government spending and GDP, and identify a false stat

Here are the answers to your questions:

Question 7:
The growth rate in per capita income at current prices (nominal income) is higher than that of per capita income at constant prices (real income) because nominal income includes the effect of inflation.
The correct option is B.

• B. Increase in price level

Question 8:
Government spending, including military activities, is a component of the expenditure approach to calculating GDP.
The correct option is True.

• True

Question 9:
Let's evaluate each statement:

• A. GDP measures the value of all the final goods and services produced in the economy. This statement is largely true in context.
• B. GDP equals wages plus trading profits. This is incorrect. GDP calculated by the income approach includes wages, rent, interest, and profits (corporate profits, proprietors' income), along with other adjustments, not just "trading profits."
• C. GDP excludes intermediate goods and services to avoid double-counting. This statement is true.
• D. GDP stands for Gross Domestic Product. This statement is true.

Therefore, the false statement is B.
The correct option is B.

• B. GDP equals wages plus trading profits