An externality is
a. the costs that parties incur in the process of agreeing and following through on a bargain.
b. the uncompensated impact of one person's actions on the well-being of a bystander.
c. the proposition that private parties can bargain without cost over the allocation of resources.
d. a market equilibrium tax.
b
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Additions to inventory are
A) not counted as an expenditure in GDP accounting. B) counted as an intermediate input. C) counted as a component of investment spending. D) subtracted from sales revenue in calculating profit income.
Which of the following is NOT a correct statement about the Federal Reserve banks?
A) They supervise member banks within the Federal Reserve System. B) They provide a system of check collection and clearing. C) They provide the economy with gold backed currency. D) They act as banker and fiscal agent for the U.S. government.
The goal of expansionary fiscal policy is to shift the _________ curve to the _________
Fill in the blank(s) with the appropriate word(s).
If the Federal Reserve reduces short-term interest rates to virtually zero, and the economy still needs stimulus, it may want to turn to unconventional monetary policies.
Answer the following statement true (T) or false (F)