Intermediate goods and services are:
A. used only as inputs to produce something else and are not counted as separate items in GDP.
B. goods that consumers buy in parts-like a new tire for their car-and are included as separate items in GDP.
C. goods that consumers buy in parts-like a new tire for their car-and are not included as separate items in GDP.
D. used only as inputs to produce something else and are counted as separate items in GDP.
Answer: A
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Household wealth refers to
a. human capital. b. the flow assets. c. net worth. d. the flow of income.
When the Fed raises the required reserve ratio, it:
a. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public. b. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public. c. increases the amount of excess reserves that banks hold, encouraging them to make loans to he general public. d. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public. e. decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
Which of the following correctly describes the condition that generates the equilibrium levels of price and aggregate output in the economy?
a. When the U.S. budget is balanced b. When aggregate quantity demanded is maximized c. When aggregate supply minus aggregate demand equals the price level d. When aggregate demand equals aggregate supply
Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?
A) D increases, S no change, P and Q increase. B) S increases, D no change, P decreases, Q increases. C) D and S increase, P and Q decrease. D) D no change, S increases, P decreases, Q decreases.