In relatively poor economies, modest expenditures on public health (immunization of children) can produce large improvements
What does this imply about the accuracy of the growth rate of real GDP as a measure of national well-being? How is the situation different in rich economies?
Expenditures on public health are included in GDP, but the resulting improvement in health is not. Indeed, improved public health may reduce some medical expenditures. The result is that GDP understates improvement in national well-being. In rich economies, rapidly rising medical expenditures are counted in GDP, though a portion is then deflated by rising prices in the health sector. To the extent that expenditures result from medical conditions such as obesity, it seems unlikely that well-being is improving faster than expenditures. The tendency for the growth rate of real GDP to underestimate the rate of improvement in the health component of national well-being is less prominent in rich economies than in poor economies.
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Refer to the scenario above. Which of the following is true in this case?
A) Firm A's dominant strategy is to choose Strategy X. B) Firm B's dominant strategy is to choose Strategy Y. C) Firm A chooses Strategy X if Firm B chooses Strategy Y. D) Firm A chooses Strategy Y if Firm B chooses Strategy Y.
Suppose you read in the paper that the Federal Reserve plans to expand the money supply. The Fed is most likely to do this by
A) printing more currency and distributing it. B) purchasing government bonds from the public. C) selling government bonds to the public. D) buying newly issued government bonds directly from the government itself.
Every six weeks, the Federal Open Market Committee (FOMC) meets to discuss how to best adjust ________ to accommodate shocks that shift the level of ________
A) the equilibrium real interest rate; the target Fed Funds rate B) the target Fed Funds rate; the equilibrium real interest rate C) the 3 month T-bill rate; the inflation gap D) target rate of inflation; money demand E) none of the above
a short-run altercation between economic upturns and downturns
What will be an ideal response?