GDP overstates the productive capacity of a country when:
a. economic bads like pollution are produced and then must be cleaned up.
b. there is a sizable underground economy.
c. nonmarket production represents a large portion of the economy.
d. working conditions improve, allowing jobs to be completed safer and faster.
a
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When the natural unemployment rate ________, the short-run Phillips curve shifts ________ and the long-run Phillips curve shifts ________
A) increases; rightward; rightward B) increases; rightward; leftward C) decreases; rightward; rightward D) decreases; leftward; rightward E) increases; leftward; leftward
Refer to Figure 22-4. Suppose the per-worker production function in the figure above represents the production function for the U.S. economy
If the United States decided to cut its support of university research in half, this would cause a movement from A) B to D. B) B to E. C) B to C. D) B to A.
Most U.S. currency held outside the U.S. banking system is held by foreigners
Indicate whether the statement is true or false
Economists estimate that the total lag for monetary policy is about:
A. 1-2 days. B. 2 weeks to 1 month. C. 3-12 months. D. 2-4 years.