Which adjustment(s) must be made to convert net domestic product to GDP? i. add indirect taxes ii. subtract subsidies iii. add depreciation
A) i and iii only
B) i, ii and iii
C) ii only
D) iii only
E) i and ii
B
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Explain how our standard of living depends upon our level of real GDP per person, but there might not be a one-to-one relationship between the standard of living and real GDP per person. Give examples of things that can affect one, but not the other
What will be an ideal response?
Consider the distributed lag model Yt = ?0 + ?1Xt + ?2Xt-1 + ?3Xt-2 + … + ?r+1Xt-r + ut. The dynamic causal effect is
A) ?0 + ?1 B) ?1 + ?2+…+?r+1 C) ?0 + ?1+…+?r+1 D) ?1
For a given price level, the aggregate expenditure line relates unplanned spending to the level of government investment in the economy
Indicate whether the statement is true or false
Moving away from the contract curve will
A) harm both parties. B) harm only one of the parties. C) harm at least one of the parties. D) harm neither of the parties.