Investment, as included in GDP, consists of what?

What will be an ideal response?


Investment is the purchase of new capital goods such as tools, instruments, machines, buildings, and other constructions and additions to inventories. Investment does not include the purchase or sale of stocks and bonds.

Economics

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Discuss four problems with the CPI. Does the CPI tend to overestimate or underestimate the true inflation rate? How big is this bias?

What will be an ideal response?

Economics

Proponents of the new growth theory argue that which of the following is a determinant of economic growth?

A) An effective system of patent protection B) The quality and size of the nation's educational system C) The proportion of income that goes into research and development D) All of the above

Economics

Tom walks Bethany's dog once a day for $50 per week. Bethany values this service at $60 per week, while the opportunity cost of Tom's time is $30 per week. The government places a tax of $35 per week on dog walkers. Before the tax, what is the total surplus?

a. $60 b. $50 c. $30 d. $25

Economics

Refer to the graph shown. An increase in the U.S. price level would shift:

A. D1 left and S1 right, causing a depreciation of the euro. B. D1 right and S1 right, causing a depreciation of the euro. C. D1 left and S1 left, causing an appreciation of the euro. D. D1 right and S1 left, causing an appreciation of the euro.

Economics