Which of the following statements is true?
a. The inclusion of intermediate goods and services into GDP calculations would underestimate our nation's production level.
b. The expenditures approach sums the compensation of employees, rents, profits, net interest, and nonincome expenses for depreciation and indirect business taxes.
c. Real GDP has been adjusted for changes in the general level of prices due to inflation.
d. Real GDP equals nominal GDP multiplied by the GDP deflator.
c
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Holding all else constant, when a bank receives the funds for a deposited check
A) cash items in the process of collection fall by the amount of the check. B) bank assets increase by the amount of the check. C) bank liabilities decrease by the amount of the check. D) bank reserves increase by the amount of required reserves.
The price elasticity of gasoline supply in the U.S. is 0.4. If the price of gasoline rises by 8%, what is the expected change in the quantity of gasoline supplied in the U.S.?
A. +32.0% B. +0.32% C.-3.2% D. +3.2%
If market demand is inelastic and supply is subject to severe shifts from season to season, it follows that
A) price changes are likely to be small. B) price changes are likely to be large. C) total revenue is likely to be constant over time. D) total revenue is likely to be highly volatile. E) b and d
In a multiple regression model, the OLS estimator is consistent if:
A. there is no correlation between the dependent variables and the error term. B. there is a perfect correlation between the dependent variables and the error term. C. the sample size is less than the number of parameters in the model. D. there is no correlation between the independent variables and the error term.