The government's purchases of goods but not its purchases of services are included in GDP
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Based on the neoclassical theory of investment, which aspect of a booming economy helps to explain the procyclicality of investment?
A) Tax revenues are likely to be rising. B) The real interest rate is likely to be rising. C) Capital goods are becoming more expensive. D) Financing constraints are likely to be relaxed for many businesses.
Which of the following is the best example of a firm operating in a monopolistically competitive market?
a. A Kansas wheat farmer. b. TGI Fridays, a family restaurant. c. U.S. Postal Service. d. Boeing, an aircraft manufacturer
Many Democrats support raising the U.S. minimum wage. Critics of raising the minimum wage argue that minimum-wage laws are
a. too expensive for local governments to fund. b. too expensive for local governments to administer. c. imprecise in their ability to help the working poor. d. easy for businesses to pay.
An increase in investment causes the price level to ________ in the short run and ________ in the long run
A) increase; increase further B) increase; decrease C) decrease; decrease further D) decrease; increase