Suppose Regretta Sigh becomes the lucky winner of a $10,000,000 state lottery jackpot after purchasing a single $1.00 lottery ticket. How does her lucky expenditure affect current GDP?
A) GDP rises by $1.00.
B) GDP rises by $9,999,999.
C) GDP rises by $10,000,000.
D) GDP rises by $10,000,001.
E) GDP rises by the present value of the total cash prize.
A
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The change illustrated in the figure above is part of the transmission process of the Fed's monetary policy
As a result of the increase in the supply of loanable funds, in the short run aggregate demand ________, aggregate supply ________, and potential GDP ________. A) increases; does not change; does not change B) increases; increases; increases C) decreases; increases; increases D) increases; decreases; decreases E) decreases; decreases; decreases
Which of the following will be excluded from the measurement of gross domestic product (GDP)?
a. The market value of automobiles purchased by the federal government b. The market value of California wine purchased by a Canadian firm c. The payment of employees' medical insurance d. The market value of computers purchased by state governments e. The market value of transactions in the underground economy
Answer the following statement(s) true (T) or false (F)
1. Title VI of the 1990 Clean Air Act Amendments specifically addressed the problem of tropospheric ozone. 2. To help the U.S. achieve its objectives to control ozone depletion, an escalating excise tax was levied on the production of ozone-depleting substances. 3. According to the Regulatory Impact Analysis (RIA) of the phaseout plan for ozone-depleting substances, the associated costs exceedthe expected benefits. 4. As the effective price of ozone-depleting substances rises due to the excise tax, the demand for substitute substances increases. 5. As a consequence of actions under the Montreal Protocol, the ozone depletion problem has been eliminated.
When increasing its output results in falling costs, a firm that can adjust all inputs is experiencing
A) diseconomies of scale. B) economies of scale. C) loss. D) capital gains.