Many economists argue that real GDP is
A. not a good measure of economic well-being because it excludes increases in leisure time.
B. a good measure of economic well-being because it includes changes in personal safety.
C. a good measure of economic well-being because it includes increases in leisure time.
D. not a good measure of economic well-being because it overvalues increases in leisure time.
Answer: A
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Suppose the economy is initially at equilibrium, in which total planned real expenditures equals real GDP. Which of the following will occur if there is an increase in autonomous investment?
A) Inventories will decrease immediately and production of goods and services will increase until real GDP catches up with total planned real expenditures. B) Inventories will increase immediately and production of goods and services will decrease until real GDP catches up with total planned real expenditures. C) Inventories will not change and production of goods and services will not change either. D) Both inventories and production of goods and services will increase.
Oligopoly is a market structure in which
a. non price competition is seldom used. b. all producers are selling identical or similar products. c. there are many sellers with differentiated products. d. administered pricing is rarely practiced.
In 1961, President John F. Kennedy, acting upon advice from his economists, proposed tax cuts. The advice he received
a. was opposed to the teaching of Keynes, who had taught that tax cuts were counterproductive. b. was opposed to the teaching of Keynes, who had taught that all attempts to stabilize the economy were futile. c. came from economists who had studied Keynes's ideas when those ideas were only a few years old. d. came from economists who were unaware of Keynes's ideas because those ideas had not yet been widely disseminated at that time.
A cross-country analysis of money growth shows that the growth rate in the money supply was:
A. higher in countries with lower inflation rates. B. lower in countries with lower inflation rates. C. lower in countries with higher inflation rates. D. the same whether the countries had high or low inflation rates.