If you buy stocks and bonds, the dollar value of those stocks and bonds is
A. included in Gross Domestic Product (GDP) if the stocks and bonds were issued by business firms but not if they were issued by governments.
B. included in Gross Domestic Product (GDP) under investment.
C. included in Gross Domestic Product (GDP) under consumer expenditures.
D. not included in calculating Gross Domestic Product (GDP) for they merely represent a transfer of ownership.
Answer: D
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Generally speaking, firms _____ of their capital assets
a. prefer straight-line depreciation b. prefer accelerated depreciation c. are indifferent between straight-line and accelerated depreciation d. prefer not to depreciate
To have more consumer goods in the future, we must
A) produce more capital goods today. B) lower current income. C) get government involved in the production process. D) stop producing all goods today.
In the intermediate range of the aggregate supply curve, if government spending increases caused the aggregate demand curve to shift outwards, which of the following ismostlikely to occur?
a. The price level and real GDP will both rise. b. The price level will not change, but real GDP will increase. c. The price level will rise, but real GDP will not change. d. Both the price level and real GDP will not change.
The primary purpose of antitrust legislation is to
a. protect small business b. protect the competitiveness of U.S. business c. protect the prices of American-made products d. ensure American labor is paid a fair wage e. ensure firms earn only a fair profit